My husband died last year and I inherited his 50% shareholding in his Limited Company. The other shareholder also has 50% BUT he has started a new business in his own name Trading As the same name as the company. So he is using the name to trade outside of the company. Can he do that?
I don't want him to benefit from the hard work my husband put into the business and wish to protect its trading name whilst the family decides whether to continue with it.
You have apotential claim against him for breach of duty (to act in the best interest ofthe original company) and for compensation/damages in "passing off" because heis attempting to profit off the back of the original business.
It really comesdown to how much you want to spend taking this to court if he simply refuses tochange the name.
Assuming thatthat was not an issue, and leaving it aside for a moment, the amount ofcompensation that you could get be very difficult to quantify because thecompany is no longer active and it will be difficult for you to say what thecompany as a result of his actions.
To summarise: youdo have a potential claim/cause of action against him
You can alwaysget a solicitor to write to him threatening an application to court for aninjunction and costs and see what reaction it gets. We get many such questionson here from people who have had those kind of letters
Can I assist anyfurther with this? Please bear with me today because I will be online andoff-line clients.
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Thanks for your help, we are consulting with our family and will return to you if we need any further advice.Chris
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