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Background - We agreed to change the name of the company at an EGM, but, as it is a community and voluntary organisation with charitable status we were told by the chair that it became a mindfield and setting up a new sister company was the best option - thats when we received notice by email to opt into becoming a member of the new company
I requested a directors meeting to discuss this and he refused saying no, he was going ahead regardless of my concerns and we if we opted in would be responsible for the new company - Can that process by right and legal?
There are no shares within the company - it is 100% charity and funded
My question is - is it legal for him to decide that we as one company set up a sister company with the directors having full legal responsibilities in the format of an email and not through a directors meeting
Yes but can he decide to set up a new sister company from his position as chair without the full consent of the board or through a board meeting - can he do that under the theme of the current company or should he do that as a totally separate company -
the issue is - the company cant access funding in its current form as it is 100% funded so therefore they need another company set up to access funding and as a matter of urgency he is going ahead to set this up
Thank you - it may have got me a while to explain this properly - thank you for bearing with me.