Ownership of land

margaret011281

Hi.

Could you please advise?

We have an ltd company together with my husband. He owns 510 shares and I own 490shares.

He bought a piece of land with company money without my knowledge and now he claims I don't have any rights to this piece of land.

Is he right?

Was he able to buy this land without my consent?

Thank you

loubel

Did he buy it or the company? Is he the sole director of the company? 

MyRealNameToo

margaret011281 said:

Hi.

Could you please advise?

We have an ltd company together with my husband. He owns 510 shares and I own 490shares.

He bought a piece of land with company money without my knowledge and now he claims I don't have any rights to this piece of land.

Is he right?

Was he able to buy this land without my consent?

Thank you

Presumably this is soon to be ex husband?

Are your two sets of shares the same class? 

So the land has been registered in his name or the companies? 

You would need him or your accountant to explain the transaction, it could be he took a directors loan from the company to be able to buy it personally. If you have different share classes then it could be a dividends was paid only to one share type and he used those funds to buy the land. 

With only two share holders and an uneven holding he pretty much can do what he wants as you will never be able to outvote him. Obviously when you do look to divorce the land will be a marital asset in the pot for consideration when dividing out who gets what. 

tacpot12

Does the company have an asset register that shows this land as an asset? 
Do you have an accountant? 
Are you considering divorcing your husband, or do you think he is considering divorcing you? 

Baldytyke88

margaret011281 said:

Hi.

Could you please advise?

We have an ltd company together with my husband. He owns 510 shares and I own 490shares.

He bought a piece of land with company money without my knowledge and now he claims I don't have any rights to this piece of land.

Is he right?

Was he able to buy this land without my consent?

Thank you

If he has 20 more shares in the company than you, he can decide what happens with company money?

retiredbanker1

If you are a signatory on the company bank account you could try to get it 'blocked' citing a company dispute?
At the very least this should get him to the negotiating table?

margaret011281

loubel said:

Did he buy it or the company? Is he the sole director of the company? 

Hi,
I'm not sure in what name he bought it , but I presume in company's name. Yes, he is the only director

loubel

Well if the company owns the property then you have an interest in it through your shares in the company. 

retiredbanker1

loubel said:

Well if the company owns the property then you have an interest in it through your shares in the company. 

Unless stated in the Articles of the company - this is worth diddly squat.
If a simple majority vote is required to pass a company motion such as acquiring land, there is nothing she can do about it.
If the articles say something like a 66% vote in favour is required then that would be a different matter.

loubel

Not sure what your point is? The company owns the property and the OP owns 49% of the company. So the value of the shares and any dividends will take into account this new company asset and any income it is bringing in. 

MeteredOut

loubel said:

Not sure what your point is? The company owns the property and the OP owns 49% of the company. So the value of the shares and any dividends will take into account this new company asset and any income it is bringing in. 

...assuming the same share class. Which the OP was asked about but has not answered.