Business owned car

chikexx1

Hi, I am going through a divorce with a first hearing date for a financial settlement. My husband removed me as a director without my knowledge. My family car(3 small children) is owned by our company. He has today told me via his solicitor that the car is being sold and he’s coming to pick it up with the police if necessary. Can he  do this?? I have no legal help as he has removed any financial access for me . Please help

burlingtonfl6

Were you a share holder too? 

chikexx1

I am still a shareholder but he has the majority. Thanks

AskAsk

i am not sure he can remove you as director without your consent or at least your knowledge.  bringing the police is only a threat as the police will not get involved in these matters as they will be considered civil and not criminal.  for them to get involved would require a court order.

if i were you, i would question the removal of you as director without your knowledge.  have a look on companies house to see if you have indeed been removed or is this an empty threat.

if you are going through a divorce, it will be in your interest to seek advice from a family lawyer.  you don't have to instruct them to act on your behalf, which is expensive, but you can pay them for advice only and that will keep costs down.

my gut feeling is that he doesn't have the right to do this and so don't hand over the car to him.  let him call the police if this is a real threat and tell the police that he is harassing you and state that you are still a director of the company and that he has removed you as director illegally, without your knowledge and so this is a civil matter and not a criminal one, and that you will be consulting a family lawyer to protect you and your childrens' interest.

CookieMonster

chikexx1 said:

 I have no legal help as he has removed any financial access for me . Please help

Go see a solicitor and explain the situation; they can probably be paid later from the marital assets.

TBagpuss

Talk to a solicitor. You may be able to make an application for Maintenance Pending Suit (to provide you with some financial support, including an element for legal coasts) between now and when the financial financial settlement is agreed or ordered. 

Most solicitors won't be able to delay being paid until the finances are sorted, as that would mean  that they would effectively be lending you the money for your legal costs, but there are specialist financial products available which offer loans for this type of situation, depending on the value of the assets.  You may also be able to look at getting a personal loan or a credit card .

in relation to his removing you as a director, first off, check Companies House to see if that is true. Secondly, look at the company articles of association. It's possible that he does have power to do this - it's quite common for the majority of shareholders to be able to remove a director, so if he is the majority shareholder it may well be within his power. If there is nothing specific then I believe that under the Company's Act a majority of shareholders can remove a director by passing a resolution with a majority vote, at a general meeting of the company. For that process, he would probably have to ensure that you in your capacity as shareholder had notice of the general meeting, However, the articles may also set out the process - for instance, whether he is required to provide any specific period or form of notice.

Directors are often employees of the company so you may have employment rights as well, if that is the case for you. 

I agree that the police are unlikely to get involved although if he does sell the car then the buyer will be entitled to it, but equally it would strengthen your case to seek interim maintenance from him to enable you to rent or buy a new vehicle, so it might well end up costing him more in the long run. 

burlingtonfl6

TBagpuss said:

Talk to a solicitor. You may be able to make an application for Maintenance Pending Suit (to provide you with some financial support, including an element for legal coasts) between now and when the financial financial settlement is agreed or ordered. 

Most solicitors won't be able to delay being paid until the finances are sorted, as that would mean  that they would effectively be lending you the money for your legal costs, but there are specialist financial products available which offer loans for this type of situation, depending on the value of the assets.  You may also be able to look at getting a personal loan or a credit card .

in relation to his removing you as a director, first off, check Companies House to see if that is true. Secondly, look at the company articles of association. It's possible that he does have power to do this - it's quite common for the majority of shareholders to be able to remove a director, so if he is the majority shareholder it may well be within his power. If there is nothing specific then I believe that under the Company's Act a majority of shareholders can remove a director by passing a resolution with a majority vote, at a general meeting of the company. For that process, he would probably have to ensure that you in your capacity as shareholder had notice of the general meeting, However, the articles may also set out the process - for instance, whether he is required to provide any specific period or form of notice.

Directors are often employees of the company so you may have employment rights as well, if that is the case for you. 

I agree that the police are unlikely to get involved although if he does sell the car then the buyer will be entitled to it, but equally it would strengthen your case to seek interim maintenance from him to enable you to rent or buy a new vehicle, so it might well end up costing him more in the long run. 

There could be a case where the current car is leased and he is struggling to pay for it but I agree, his current actions will probably end up costing him more.

Plus you would think he would want his 3 children to be transported in the same why they already are. It's silly to punish them.

chikexx1

Thankyou everyone! The car is actually on finance . I really think I am going to have to hand over the keys as I can’t get a definite answer off anyone. He is very clever and he is probably allowed to do this😢

burlingtonfl6

chikexx1 said:

Thankyou everyone! The car is actually on finance . I really think I am going to have to hand over the keys as I can’t get a definite answer off anyone. He is very clever and he is probably allowed to do this😢

So not owned by your company as originally stated. Is he ending the agreement early?

I find it odd he would put his kids in this position. Getting one over on a partner is petty, but understandable, in some situations although children should be left out of it.

chikexx1

Yes sorry! The car is actually on finance so I’m guessing it is owned by the finance company. Yes he says he’s selling it and paying off the finance company.

CookieMonster

Have you been fired?
Is the company being wound-up?
This seems a bit odd to say the least.