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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a 15% share as an investor in a Ltd UK Company what

Resolved Question:

I have a 15% share as an investor in a Ltd UK Company what rights do I have and say in the Ltd Company ? Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Do you have a shareholders agreement? Has there been an AGM please?

Customer:

All I can tell you is i Invested £50k in a Ltd Company which was registered in the UK to which I got 15% shares in the Ltd Company everything was going well but the Owner ran out of money and currently the work that was being done (development work) has stopped due to trying to raise more funds which has not happened as of yet.

Alex Watts :

What is it you want to achieve please?

Customer:

What I would like to know is, do i have any say in the company and how it is run along with can i get my money back?

Alex Watts :

Yes you have say in the company and how it is run. There should be an annual meeting where you can propose resolutions.

Alex Watts :

Given your shareholding you might also be able to call special meetings.

Alex Watts :

But sadly you have no right to your money back unless you have a shareholder agreement saying you do

Customer:

there is no share holders agreement for my money back, I have been told I can have a say but with only 15% share holding the 85% owner can do what ever he wants ?

Alex Watts :

Yes sadly.

Alex Watts :

That is because you have limited rights.

Alex Watts :

But the owner must act in the best interest of the Company

Customer:

Just as I thought, so as he has run out of money the development work has stopped and he is trying to raise more money (he has asked me for more but I have refused) so stagnant, is there anything I can do?

Customer:

He has done but has run out of money

Alex Watts :

Sadly not. If more money is raised that could dilute your share of course.

Alex Watts :

Sadly not

Alex Watts :

Unless he raises more funds there is nothing you can do apart from sell your share

Customer:

so we are going no where hence asking for my money back which seem I cant get

Alex Watts :

This is what the benefit of a shareholders agreement would have been

Alex Watts :

No, but then sadly you are not entitled to any money back unless there has been an agreement

Customer:

OK thank you, ***** ***** I thought

Alex Watts :

That is the risk of investing I am sorry to say, especially without an agreement

Alex Watts :

Does this answer your question?

Alex Watts :

I am sorry its not the answer you want and certainly not the one I want to give you, but I have a duty to be hones

Alex Watts :

honest

Customer:

yes it is all good but more money needed its as simple as that

Alex Watts :

I am sorry.

Customer:

Honesty is the only way I work and thank you for this

Alex Watts :

If this does answer your question might I invite you to rate my service today

Alex Watts :

If the system wont let you or you need more help please click reply

Customer:

Yes gladly

Alex Watts :

Thank you and best of luck with this

Customer:

how do i do this please?

Customer:

Found it at the bottom lol

Alex Watts :

Ah ok :)

Alex Watts :

Thanks

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