Company Buy Out

Biggerboat1

I was an employee at a small limited company for twenty years before being offered a 15% share in a Company buyout along with four others (the previous sole owner is also one of the four, now retaining a smaller share). The company has done reasonably well over the last few years and this offer was sold as a pretty much 'no lose' offer. The arrangement was set to pay one lump sum (which has been done) to be followed with a further payment in instalments over the next three years.

Two years in, despite steady company business, no further amounts have been paid, and I've been told that there are no dates scheduled for other payments at present. When I've requested details on the company funds, excuses have been made and shareholder meetings have stopped taking place.

Has anyone else experienced a situation like this?

El_Torro

I don't have experience of a similar situation, however:

Who owes you these three installments that have so far not been paid? Is it the company? If so can't you force the company to make these payments? I know you only own 15% of the company but if you get enough shareholders on your side (at least 50% ownership) doesn't that solve the problem? Assuming of course that the company has enough money available to make these payments. 

Biggerboat1

The company (of which I am now a shareholder) should be making enough money so that a date can be put in place to pay the previous owner. I've spoken to my fellow shareholders about this situation but they don't seem to have any concerns, saying that they are 'sure that things will work out.'

I think that I'll have to insist on a meeting where all the company finances and transactions are made completely transparent.

Marcon

Biggerboat1 said:

I was an employee at a small limited company for twenty years before being offered a 15% share in a Company buyout along with four others (the previous sole owner is also one of the four, now retaining a smaller share). The company has done reasonably well over the last few years and this offer was sold as a pretty much 'no lose' offer. The arrangement was set to pay one lump sum (which has been done) to be followed with a further payment in instalments over the next three years.

Two years in, despite steady company business, no further amounts have been paid, and I've been told that there are no dates scheduled for other payments at present. When I've requested details on the company funds, excuses have been made and shareholder meetings have stopped taking place.

Has anyone else experienced a situation like this?

What other people have experienced isn't relevant - you need to look at the facts relating to your situation. 

Start with the facts: what contractual agreements were entered into at the time? What di you have to undertake to do in exchange for your 15% share? Did you undertake any due diligence before agreeing to whatever you agreed to?

Biggerboat1 said:

The company (of which I am now a shareholder) should be making enough money so that a date can be put in place to pay the previous owner. I've spoken to my fellow shareholders about this situation but they don't seem to have any concerns, saying that they are 'sure that things will work out.'

I think that I'll have to insist on a meeting where all the company finances and transactions are made completely transparent.

What are you worried about - paying the previous owner or paying you?

What do the Articles of Association say about the right to call general (shareholder) meetings - have you read them? If you've not got a copy, you should be able to download free https://www.gov.uk/get-information-about-a-company