Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. You cannot ask for the payment to be made in assets. What you can do is arrange for him to buy the shares from you or have the company buys its own shares back, and have the price for the shares paid in installments while his cash flow improves. You could then ask for a charge over the shares or company assets (this is like a mortgage over assets) as security until you are paid the full monies for your shareholding. Are you allowed to sell to a third party?
Hi, Thank you. What you would need is a formal share sale agreement, which contains a payment obligation and an offer of a legal charge over the shares or the company assets. Crucially the document should say if any payment is missed the whole amount becomes due. Does the purchaser of the shares own his own home?
Hi, Thank you. Can you tell me approximately how much he will pay for the shares and how many months installments he will pay?
Hi, Thank you. Given the sum of money involved, I would suggest you need the following:
- A letter agreement detailing the exact installments and confirmation that if any payment is missed the whole sum becomes due;
- A stock transfer form called a CON40G;
- A charge over shares
The best place to find all these documents is at a site like Simply Docs. However I must recommend you consider using a local solicitor, they should be able to arrange this for a relatively inexpensive sum. The benefit of this is if anything goes wrong you have the solicitors indemnity insurance if they mis advise you. You can find a local solicitor here www.lawsociety.org.uk.
Kind regards AJ
Hi, Thank you. You can resign as a director at any time. If the company is on the brink of insolvency, even if you resign now you will still have to co operate with the liquidator as you would have been a director immediately prior to insolvency. Remaining as a director means you will have greater access to the company financial information, so I would consider carefully whether it is worth resigning. If the other director is driving the company into the ground and trading knowing it has no chance of paying its creditors, then I would personally resign now.