Shareholders dispute

[davidmoss]

Can someone help me with the following question.. I am a shareholder in a small private Ltd company with 20% shares, another member own the rest of shares 80% ( he is also a director). Both our name appear on AR01 annual return form from companies house – but have no certificate of any sort! And no shareholders agreement.

We don’t take anything home yet, only paid dividend once this year, small amount!

Question.. What documents Companies house produces for shareholders and what is my legal position the director decide to remove me from the shareholding list?

 

[teddys]

The Companies House is the public register where companies details are made public. They do not produce anything for the shareholders.

Your company produces documents for the shareholders and in a micro set up like yours, you could ask for a copy of your accounts.

The director cannot remove you as a shareholder. You will cease to be a shareholder only if you ever wish to be so.

 

[BTC1812]

The public record of directors and members is actually the register of the company held at the registered office, the officers have a duty under the Companies Act to keep it up to date. It should also be available to view by anyone with a valid reason in normal working hours and on payment of the appropriate fee (£3.50), you should also have been issued with a share certificate.

You have a right to view the register if it is not up to date insist the entries are made and insist on a share certificate. Shareholders agreements are entirely optional and sometimes necessary.

One point to note is that you are only a 20% shareholder and in reality do not have much influence in the running of the company which requires either a simple majority or a 75% majority to pass most decisions. You are very much a minority shareholder.