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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Company law question - director dispute. I have decided to

Resolved Question:

Company law question - director dispute. I have decided to leave a company in September 2014 (I am one of 6 directors, equal shares). I am owed £14,500.00 by the company, consisting of a loan of £6k to the company; £5k for work undertaken to support our business development (the directors approved this payment to me in May 2014 and I invoiced), and £3,500 'drawings' for August 2014. It was agreed in May 2014, that all directors would receive 'drawings' whilst we are building the business and that we would not be asked to reimburse the company however 'drawings' would be accounted for in December 2014 when it came to profit-sharing. Now one of the directors is insisting on using a remuneration model which was discussed but never agreed by all the directors and claims that I owe the company money which must be deducted from what I am owed. 3 directors agree and 3 directors disagree. How can I get what I am owed - I can't afford to lose £14,500.00 particularly as my health is poor.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,
You may sue the company as it is a separate legal entity from you and other directors and shareholders to get your money.
I would suggest that you send a final demand to the company addressed to the board of directors giving it say 2 weeks to pay the money or you will go to court.
If you are still not paid, you may then file a court claim online at www.moneyclaim.gov.uk against the company for your money.
May I help further?
Customer: replied 3 years ago.

Thank for you reply.

How do I establish that I am owed this money and repayment of my loan to the business when 3 directors are insisting that I owe the company money and 3 don't agree that I owe the company money based on the remuneration model which has been used? Is it your advice that there is no point in meeting with two of the directors on 8 October to see we can resolve this?

If I file a court claim, as you suggest, won't it simply make things worse?

Expert:  UKSolicitorJA replied 3 years ago.
Yes, filing a court claim is always the last option if your negotiations fail with the company and or the rest of the directors.
You may certainly meet the other 2 directors and see what they have to say.
I am sure you have proof of your £6000 loan to the company, the invoice which you say was agreed by the others and the drawings which were also agreed in May.
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Customer: replied 3 years ago.

Yes, I have proof of the loan and invoices and emails. The issue is that one director is leading the charge in refusing to pay what I am owed. As I said, 3 directors made loans to the company, 3 haven't. Some directors' invoices have been made, others haven't. It's arbitrary and mostly undocumented.

Expert:  UKSolicitorJA replied 3 years ago.
I am afraid I have answered your original question, if you do not get your money back from the company amicably, then you would need to go to court to try and recover it. The court will have the final say after considering your claim and evidence before it.
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