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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3671
Experience:  Solicitors 2 years plus PQE
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Good morning, I am a company director & 5% shareholder for

Customer Question

Good morning,
I am a company director & 5% shareholder for a small distributer. I have been given a sick note for 2 weeks due to stress (at work). We currently pay ourselves by way of £10K PAYE wage & equal dividend payment....
There are 4 Directors two owning 45% the other two owning 5% each....We traditionally have monthly Board Meetings where we vote for our dividend ( we have ABC&D shares which are EQUAL)...As I am off sick I am extremely worried that I will not get my dividend payment....
Could you please advise me regarding this ?
Thank-you very much
Jane Agar
Business Development Director
Submitted: 4 years ago.
Category: Law
Expert:  Ben Jones replied 4 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today.
Before proceeding please note that as I am a practising solicitor, I am often in and out of meetings, travelling between clients or even at court when I pick your question up. This may even occur at weekends. Therefore, I apologise in advance but there may be a delay in getting back to you and providing my advice. Please be patient and I will respond as soon as I can. You do not have to wait here and you will receive an email when I have responded. For now please let me know how long you have worked there.

JACUSTOMER-jvvy510i- :

Hello Ben,

JACUSTOMER-jvvy510i- :

Thank you for answering me so quickly...

JACUSTOMER-jvvy510i- :

I have been employed there 16 years & I produce 30-31% of the Sales Turnover (which is £3.5 million)

JACUSTOMER-jvvy510i- :

Regards

JACUSTOMER-jvvy510i- :

Jane

Ben Jones :

Thanks for your payment, this is more of a corporate law issues so it falls somewhat outside of my area of expertise so i will opt out and allow other experts to deal with it if they can.

Ben Jones :

sorry, not payment, but patience

JACUSTOMER-jvvy510i- :

Thanks Ben..... What do I do now please?

Ben Jones :

you do not have to wait in here you will get an email if someone else picks this up and posts here

JACUSTOMER-jvvy510i- :

Thanks very much....

JACUSTOMER-jvvy510i- :

Have a good day :)

JACUSTOMER-jvvy510i- :

Jane

Ben Jones :

You too thank you

Expert:  Alex J. replied 4 years ago.
HiThank you for your question and welcome to just Answer.My colleague has referred this to me as I am a company law expert.Do you all have the same class of shares? Ie they are ABCD ordinary shares but they have just been categorised with those letters? Do the articles contain the provision to categorise them ABCD?Kind regardsAJ
Customer: replied 4 years ago.

Hello AJ,


Thankyou for replying to me...


The shares are equal & basically have been labelled as ABCD....


The articles do contain that catagorisation...We have "varying % shares" two Directors have 45% two have 5%.


BUT the ABCD ordinary shares are equal...We were paid the same until April this year...I have gone on sick due to intimidation/bullying of a co Director...I have had no communication with anyone...Only been off sick a week (3/06/2013)


All dividend payments are agreed at the Board meetings...Having been in a anxious state I have only just realised they may be able to vote no to my dividend (we pay out monthly by the way) Regards Jane


Agar.

Expert:  Alex J. replied 4 years ago.
Hi

Thank you.

I am going to go and write a response to this and will post it tonight.

In the mean time can you let me know if you have a shareholders agreement?

Kind regards

AJ

Customer: replied 4 years ago.

Thank you AJ


Yes we have a shareholder agreement.....


My intention is to ultimately leave the company BUT at the moment I am more concerned about covering my bills for the next month...I am a single parent hence my enquiry...


Thanks very much for your prompt response


Jane Agar

Expert:  Alex J. replied 4 years ago.
Hi,

Thank you.

The problem you have is because the shares have been classified ABCD then there is the possibility to distinguish dividends between them.

What I need to know is the classification contained in the articles?

Does your shareholders agreement contain a dividend policy?

Kind regards

AJ