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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 10087
Experience:  30 years as a practising solicitor.
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I am a director of a family company. My 2 brothers are also

Customer Question

I am a director of a family company. My 2 brothers are also directors. We all hold 60% shares and our children (8) hold 40%. One brother pays himself a huge renumeration which leaves the company from a £65,000 income to a £6,000 profit (due to his salary and expenses). I have just obtained a multi million pound deal from a major housebuilder and I as a director cannot get my 2 brothers to give me any money from the company. What can I do if anything. They are treating the company money as their own private bank.
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.

Do you all work in the company? Is there any resolution agreeing directors' remuneration? Is there a shareholders agreement or any other agreement settings dividend policy?

Are the children past the age of majority? Can you get a majority support behind you to convene a meeting of the company to deal with all of this? If so that is the route you should go down.

If not then you may have to resort to litigation as a minority shareholder and threaten to have the company wound up under the "just and equitable" provisions in section 122 of the Insolvency Act 1996. The threat of that is normally enough to bring the others to the table to have a sensible discussion.

Happy to discuss further. I am going off now but will be available later tonight.

Please leave a positive response so that I am credited for my time.
Expert:  JGM replied 2 years ago.
Please let me know if I can help you further here. If not please leave a positive feedback so that I am credited for my time.

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