How to enforce a charging order on shares


I do not what are the dividends and when they are paid and how to be paid them.
In the balance sheet of this company filed in the Companies House it is not made any reference to dividends and this company failed to file its Profit and Loss account so I do not know also what is its profit which should be used to pay me the dividends
Comments
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If it's a small company it's not required to file its P&L, only the balance sheet. This is due to change; but they've yet to set a date.
What makes you think it made a profit? You can get a rough idea if it did by looking at the reserves movement in the balance sheet. If you're not sure how to do this, let us know the company registration number and we can look at the accounts ourselves.
If it did declare a dividend but hadn't paid it by year end it may be in the creditor's section.0 -
To make the things simpler, we have to suppose that there is a distributable profit and that dividends will be paid and that not only reserves will be made but the issue is for me to know if dividends are paid or not.
According to the website of the Government
https://www.gov.uk/annual-accounts
A limited company should publish full accounts i.e. Balance Sheet and Profit and Loss account and also other documents because it is stated the following:
“Statutory accounts must include:
· a ‘balance sheet’, which shows the value of everything the company owns, owes and is owed on the last day of the financial year
· a ‘profit and loss account’, which shows the company’s sales, running costs and the profit or loss it has made over the financial year
· notes about the accounts
· a director’s report (unless you’re a ‘micro-entity’)”
(It is likely that the information in the Government website is up to date)
However, this company publishes only its Balance Sheet which does not make any reference to dividends.
The director is the only person having a significant interest with over 75% of the shares according to the Companies House Website. However, now is me who have this interest because of the charging order.
The director is hostile to me because I have a charging order against his shares so he will provide me information about the dividends for example the dividends policy only if he is forced to do it.
Hence, I would like to know if maybe I need an order of the court to get this information from the director.
The director who is hostile to me we do his best so that I receive nothing. The director decides if dividends are paid or reserves are made but he needs the approval of the shareholders who can opposed the dividends policy and the shareholders is me because of my charging order so this becomes a little bit complicated and needs clarification.
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I'll say again, if they are a SME they can submit abridged accounts; only the balance sheet and associated notes. Do they meet the requirements of an SME?
"Your company will be ‘small’ if it has any 2 of the following:a turnover of £10.2 million or less£5.1 million or less on its balance sheet50 employees or lessIf your company is small, you can:use the exemption so your company’s accounts do not need to be auditedchoose whether or not to send a copy of the director’s report and profit and loss account to Companies Housesend abridged accounts to Companies House"
Why assume they have distributable profits? What does the balance sheet show year on year?0 -
To add to what's been already said above, do you actually know whether the company has a dividends policy? My experience working in/around corporate governance for some years is that these are pretty rare and most companies do not have these (there is no legal requirement).
On a second point - even if a company has made a profit and has distributable reserves there's no legal requirement under English company law to pay a dividend - profits can be retained within the business.0 -
The Micro Entity Balance Sheet of this limited company says the following for the years 2023 and 2022
Called up share capital not paid
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Fixed Assets
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12,370
Current Assets
100
10,870
Creditors: amounts falling due within one year
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(12,310)
Net current assets (liabilities)
100
(1,440)
Total assets less current liabilities
100
10,930
Total net assets (liabilities)
100
10,930
Capital and reserves
100
10,930
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If those are actual figures (not 000's or higher) then IMO to get a charging order something awry must have happened between you.
Again to me just reading this thread the charging order is a useless piece of paper which assuming has cost you to get.
What is stopping this company being liquidated and starting afresh - with no liability to pay you these dividends (if they exist)?0 -
If the left column is 2023 then it does appear as if the company is being wound down. As the capital and reserves have dropped from £10,930 to £100 one could simplistically assume a dividend was paid to clear the P&L reserve. However, to reach this conclusion I'm assuming the share capital is £100 and we don't know 2023 traded at a loss.
As the company is not obliged to give shareholders full accounts, and you do not have a cordial relationship with the company, I can only think legal action may be the way forward. However, not knowing the amount of dividend you're expecting it's difficult to know if legal action will be cost effective.
This link may give you some help;
Non-payment of dividends & unfair payment policies - Francis Wilks & Jones Solicitors0 -
Appears that all that's left is a £100 of share capital and a £100 in the bank. The trading activity of the company has sold and moved elsewhere. Distributable reserves could have been paid as salary or a contribution to a pension scheme. Is the individual concerned a director of other companies ?0
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The individual concerned is director of other limited companies but their Balance Sheet also state 100 for all items.
This company is working and using a lot of equipment so it should have a lot of assets as stated in the Balance Sheet of 2022. The question is how all these assets could have disappeared for the year 2023 without leaving any trace. Are the Balance Sheet for the year 2023 real? . The Companies House does not have the means to check all the accounts that it receives.
I think that creditors can object to the liquidation of a limited company0 -
There's no creditors left as I explained. All you have is a charge over the shares. The cupboard is now bare bar £100. Who ever gave you professional advice should have been aware of the action that could be taken to circumnavigate the charge. I'd suggest you've outsmarted.
The company has not been placed into liquidation.
Companies House is merely a repository for documents
Detailed accounts would have been submitted to the HMRC along with a corporation tax return.
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