A Question About Shares In A Company

tony222

About 4 years ago I set up a Ltd company with a partner. At the time we set it up we both owned a 50% share, one each valued at £1 - standard practice.

After a few months it was clear things were not working (can't say any more, funds were being syphoned) and we went our seperate ways. My partner decided to carry on running the business and I would remain a shareholder to reflect the work I put in setting the company up.

Having heard very little since then I have now found out that there are now 100 shares in the company as other people have been brought in (and presumeably invested in it) as shareholders so I would now own a 1% share in the company rather than a 50% share.

My ex-partner has cynically offered to 'buy me out' for £1. Where do I stand?

Suarez

So he's saying the business is worth £100? What was the turnover like when you were involved?

tony222

It would have been around £100,000 then but possibly four or five times that now.

Snakeeyes21

I would be more annoyed that he has shafted you for selling 98% of your shareholding.
Were you a director? if so he cant sell other shares without passing it by you first.
Was he paying himself via a divided? if so was he paying you the same when you had the 50% share?
They cat be approved uless all directors pass it, and the they have to pay out each shareholder to the amount
that was agreed.
If you really want to stick the boot in get him struck off from being allowed to be a director of a company.

You wont get the advice you need from a forum I would get yourself to a solicitor sharpish

Savvy_Sue

Snakeeyes21 wrote: »

You wont get the advice you need from a forum I would get yourself to a solicitor sharpish

Seconded, and take your partnership agreement with you.

Seraphim

Snakeeyes21 wrote: »

Was he paying himself via a divided? if so was he paying you the same when you had the 50% share?

Check the classes of the shares. My company has three directors. We each hold different classes of shares so that we can be paid different amounts of dividends each year. Most companies are not setup this way, however, and the directors will usually all hold the same class of shares.

paddyrg

Some great answers above. Remember if you are having problems with them, you can download the shareholding and register of members location documents/info from companieshouse for a few quid.