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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3695
Experience:  Solicitors 2 years plus PQE
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Hi I wonder if you can help me. I have taken a directorship

Resolved Question:

Hi I wonder if you can help me. I have taken a directorship with a company with a 60% share. Since taking this directorship relationships have turned sour with the other directors. The main issue that I have is that I have no control over the paperwork and no access to the bank account. I am concerned there is scope for embezzlement.
Any advice you can give me would be gratefully received.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Do you have a shareholders agreement?
Do you have share certificates to prove ownership of your shares?
Kind regards
AJ
Customer: replied 3 years ago.

I have checked on the 'company check' website and it definitely states that I am on as 60% shareholder in the company. My accountant actually sorted out the paperwork.

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
Do you have a shareholders agreement?
Kind regards
AJ
Customer: replied 3 years ago.

I have not been given one.

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
Subject to what the Articles of Association say, you are within your rights to call a shareholders meeting and remove the other directors by Ordinary Resolution under S.168 of the Companies Act 2006. This would be subject to calling a meeting at proper notice and giving the directors the right to protest.
You can then put your own name on the banking mandate. Have you actually asked the company's bank to put on the mandate and also asked the company accountants to see the accounts?
You are right you must not turn a blind eye to misappropriation of the company funds. If the Company goes insolvent you could be personally liable for the company debts if the monies have been misappropriated.
Did you form the company? Does the company hold regular board meetings?
I look forward to hearing from you.
Kind regards
AJ
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