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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi I am a Director in a company with 5 shareholders, also

Customer Question

Hi

I am a Director in a company with 5 shareholders, also directors. 2 directors are not delivering what was agreed. Essentially they are delivering a website and app but looks like only a website will be available. We will have to look elsewhere for the app development and probably go to an investor who would want a share in the company.

Can we:

a. remove their shares, i.e., by half as only delivering half a product

or

b. dilute the shares by a new share issue. Assuming this is the course of action can we dilute only their shares?

We have a simple shareholders agreement but do have a clause that allows a majority shareholding to invoke special measures...will that cover their shares?

Kind regards


Graham
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return.

Alex Watts :

Do you have a shareholders agreement please?

Customer :

Hi AlexYes we have a shareholders agreement

Alex Watts :

And what does that say about in someone is in default please or termination?

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