Urgent Help, From Anyone With Business Knoledge

Discussion in 'Green Room' started by SkazzyUK, Jun 11, 2003.

  1. SkazzyUK

    SkazzyUK XP-erience Oldie

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    Hi all,

    I have a problem and am asking a favour.

    My mum owns a company, it is LTD and when she originally started the company she was in partnership with her friend.

    They were both directors, and both were the single share holders.

    Her friend decided she no longer wanted to participate in the business, she signed off her directorship but would not sign off her share of the business.

    My mum is now the director but she has one share and so does her 'EX' friend. her friend will not sign the share over to my mums new business partner.

    I was wondering if there is anyway she can get rid of her friends share? maybe a lupole or something?

    As a director can she not decide this?

    Any help would be greatly appreciated.

    Skazz
     
  2. Sazar

    Sazar F@H - Is it in you? Staff Member Political User Folding Team

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    any specifics in terms of the details of the contractual agreement when the biz was setup ?

    is/was it a 50/50 setup or what? since you say your mom was the owner and no mention of the partner as owner... just a joint director...
     
  3. SkazzyUK

    SkazzyUK XP-erience Oldie

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    My mum is registered as the owner with the company house, it is still a 50/50 setup, my mum is able to give as many shares out as she wants,

    But she does not want her ex friend to have any shares.

    Skazz
     
  4. SkazzyUK

    SkazzyUK XP-erience Oldie

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    Location:
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    Its is a LTD company, 2 Directors 1 share each.

    She terminated her directorship.

    How can she get the 1 share back if she won't sign?

    Skazz
     
  5. Sazar

    Sazar F@H - Is it in you? Staff Member Political User Folding Team

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    I dont know the terms of the partnership so I have no idea what agreements were made @ the beginning in case of someone leaving the directorship or whatever you are calling it..

    if there is a clause detailing what happens in case one person leaves the company... go ahead and act on that...
     
  6. SkazzyUK

    SkazzyUK XP-erience Oldie

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    Well it is not a direct partnership because it is limited.

    Skazz
     
  7. Octopus

    Octopus Moderator

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    just get a lawyer!
     
  8. Un4gIvEn1

    Un4gIvEn1 Moderator

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    dewd.. even if you find a loop hole you will find yourself in court from the "Ex Friend" so you might as well hire a lawyer and do it right in the first place.
     
  9. Un4gIvEn1

    Un4gIvEn1 Moderator

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    Oh... I don't know how things work over there in the UK, but here in the US most lawyers will give you somewhat of a free consultation, so you should give one a call.

    On another note... 499 posts! next one is 500! :-D
     
  10. rushm001

    rushm001 In the beginning...... Political User

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    Well yes and no. Legally she has got the power as a director to get the company to buy back the share from her friend by changing the articles of association by ordinary resolution to allow this. But as her friend owns 50% of the voting rights she can veto any change.

    Your mum could petition the courts forcing the friend to sell her share back to the company or your mum as her owning a share might not be in ther interests of the company.

    She could try to have a word with one if the partners at the company's accountants, they might help, or maybe a solicitor.

    On a side note, I take it she is the director and somebody else is the company secretary because legally the sole director of a company cannot also be the company secretary.