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Jenny
Jenny, Solicitor
Category: Law
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Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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My one third shareholder, director and comapny secretary has

Customer Question

My one third shareholder, director and comapny secretary has walked out on our company without any watning. She has unsuccessfully attempted to freeze bank accounts. She has removed the lanlord agreement file from the office. She is attempting to start a new business in the same field and contacting clients. Please advise if I can approach the police as this is a matter of theft???
Submitted: 3 years ago.
Category: Law
Expert:  Jenny replied 3 years ago.
Hello and welcome to Just Answer,

You could notifiy the police, although it is most likely that the police will say that it is a matter which will be more appropriately dealt with by he civil courts.

As a director of the company this person is in breach of fiduciary duties as set out in the Companies Act 2006. As a result of this breaches if your company suffers any loss then you will be able to sue the director in the civil court for the losses. They also have duties as an employee but the fact that they are a director gives you a stronger position. The fiduciaty duties mean that they must act in the best interests of your company and prevent them from taking action to poach your clients or eet up in compettiion whilst they are still a director.

I would suggest that you write to the director immediately asking for the return of the company property and reminding them of the fiduciary duties and stating that you will not hesitate to take appropriate legal action against them.

Hopefully this letter will be enough to put them off and make them realise that you will take action.

All the best, do come back to me if you have any further questions.

Please remember to give positive feedback, I will be happy to answer your follow on questions.

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