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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I own a small care agency which I gave a friend of mine40%

Customer Question

I own a small care agency which I gave a friend of mine40% of the company for her work, she has always been paid a wage and a dividend even though she has never done a directors role, no contracts have been signed and she has never paid any money in I would like to buy her out how easy is this
Submitted: 4 years ago.
Category: Law
Expert:  tdlawyer replied 4 years ago.

tdlawyer :

This is going to be a matter of negotiation between you. You have no legal right to buy her out, unless you entered into an agreement to that effect at the outset when you gave away the 40% of the shareholding.

tdlawyer :

If you cannot reach agreement on buying her out, then you would have to to continue with her existing as a shareholder, or seek to wind up the company.

tdlawyer :

If you do have to wind up the company, then you could always start a new company afterwards, without her involvement.

tdlawyer :

As to the appropriate figure, it is a matter of discussion and negotiation, but it is often helpful to have an expert valuer place to value on the company, so the shares can be properly valued.

JACUSTOMER-s90t4aui- : Thank you I thought it may be the case
tdlawyer :

Yes, it can often be difficult in these situations to resolve. Nobody ever wants to force the other one out, and there is little scope left after that, other than to apply to the court.

tdlawyer :

Is there anything else that you would like me to address for you?

tdlawyer :

If there is nothing else you would like me to add, would you rate the answer for me please?