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michael holly
michael holly, Solicitor
Category: Employment Law
Satisfied Customers: 6820
Experience:  Over 20 years experience of dealing with employment law matters and qualified mediator
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I'm the majority 51% director of a company I have a minority

Resolved Question:

Hi I'm the majority 51% director of a company
I have a minority shareholding director who has the remaining 49%
As a majority share holder can I make the decision to remove the other director based upon poor performance and end his employment terms.
He has been an employee for 13 months and has proved incapable even after training of completing his work with the consistent quality required, costs us more than he makes in foul ups. He is not skilled enough or confident enough to continue in this line of work.
So in brief:
1) can I remove him as director as I am the majority share holder.
2) can I terminate his employment based on very poor performance and if I did would he be able to take me for unfair dismissal ( his employment started 01/03/2015)
3) if I do the above what's the best way to get him to sell me back the 49% shares.
4) if he won't sell me the shares and there is debt on the business do I have to pay him dividends.
Look forward to your reply
Submitted: 1 year ago.
Category: Employment Law
Expert:  michael holly replied 1 year ago.
The answer to your question lies in the company documents and his contract of employment as a director.The contract of employment will set out who decides dismissal and the consequences.The company documents the mechanics and effects on shareholding by a dismissed director.It depends on the type of company, generally speaking, if the company is a trading vehicle for a small business ( such as being a legal advisor on Justanswer) and owns no premises or equipment of value the shares are unlikely to be worth much and the company docs usually give the company the right to buy them at a certain price.Best regardsMichael
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