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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I am a 20% shareholder in a private ltd company . The other

Customer Question

I am a 20% shareholder in a private ltd company . The other shareholders are my siblings.
They want to sell the company but I don't want to sell my shares. Do i have to? Can they force me to?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

It all depends on what the Company's Articles of Association or any Shareholders Agreement say. If there are no provisions forcing you to sell, then you cannot be forced to so but you could be diluted as you are a minority shareholder.

Perhaps it is advisable to sell out at the right price rather than be stuck as a minority shareholder with people who want you out anyway.

May I help further?
Customer: replied 3 years ago.

They are adamant that they wish to sell the company . Will me refusing to sell my shares stop them

Expert:  UKSolicitorJA replied 3 years ago.
They may sell their shares, you do not have to sell yours unless you agree to do so.
UKSolicitorJA and 2 other Law Specialists are ready to help you
Customer: replied 3 years ago.

We are also all Directors of the company although I am the only one who has any input into the running of the company. Can they vote me off as a director and then put in a clause that non directors are not entitled to shares and if they did vote me off as a director(I am on the payroll) would they have to make me redundant or dismiss me

Expert:  UKSolicitorJA replied 3 years ago.
Julie,

Your original question has been answers. Please leave feedback, you may open a new question asking for me only to answer.

Thank you
Customer: replied 3 years ago.

I just need to know if they can get rid of me as a director . I have built the company up without any of their input. They want to sell it to me which I cannot financially do as they are asking a huge price and I feel that I don't want to pay them for all my hard work so now they want to sell the company but I don't want to. I want to know if they can dismiss me or do they have to make me redundant ?

Expert:  UKSolicitorJA replied 3 years ago.
You could be removed as a director if an ordinary resolution is passed by the shareholders holding at least 50% of the shares.

All the best