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Matt Jones
Matt Jones, Solicitor
Category: Law
Satisfied Customers: 671
Experience:  I am a qualified and practising Solicitor with over 7 years post qualification experience
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For the last 12 years I have ran a small cleaning company with

Resolved Question:

For the last 12 years I have ran a small cleaning company with my sister-in-law. I now want to leave and get a different job. We have never drawn up a legal contract however we are a limited company so we both have a share in the business.
We have approximately 50 customers but even so I am quite happy just to walk away as I am so fed up with it. However, I feel that after all the work I have put into the business I shouldn't just walk away with nothing.
I am pretty sure that my sister-in-law will not be happy and not want to give me anything from the business but am I entitled to anything? Could I sell my share to someone else? or should I just walk away with nothing?
Submitted: 2 years ago.
Category: Law
Expert:  Matt Jones replied 2 years ago.
Matt Jones :

Hi I will try and help

Matt Jones :

A few questions:- Do you both take a wage from the company

Matt Jones :

Are there any assets of the company (i.e stock, cash in the bank etc?)

Matt Jones :

What do you feel the business is worth? have you had a formal valuation?

Customer:

We are classed as employees of the company and we both take a wage.

Customer:

The only assets are a cheap car (worth about £300), cleaning products (£30) and about £1000 in the bank.

Customer:

Not had a formal valuation so don't know the value of the company but we both take approx. £1000 each a month and I would be happy with a pay off of about £3000.

Customer:

We also have an employee who we pay weekly who has been with us about 10 years.

Matt Jones :

ok thanks

Matt Jones :

as a shareholder in the business you will be entitled to a share in the profits and the shareholding will remain in your name until you sell it. A share in a private limited company is not that same as that in a Public Limited Co, you cant just offer it on the open market. You have to offer it back to the other shareholders. The other shareholders don't have to buy them. The other shareholders can consent to them being sold to someone else however.

Matt Jones :

the issue for you of course if that f you walk away, and your sister in law doesn't continue with business in the same way (i.e stops working, or taking on as many jobs) then this affects the value of the business and what you would get for it

Matt Jones :

is there anyone who would be interested in buying into the business that she would be happy to work with?

Customer:

If my business partner refuses to buy me out and if I can't find somebody else to buy my share but she is still running the business as it is now would I then have to take legal action against her to recuperate some money?

Matt Jones :

No as she is technically doing nothing wrong. She is running the company as it should be run. You would be entitled to a dividend on any profits and to attend AGM's and vote on matter etc.

Matt Jones :

Hi I have to pop out for a bit. If you wish to post any further question please do so. If happy for now please leave me positive feedback so I get paid for my time. the question wont close and if you think of anything later on the line you can always post further questions and I will come back to you.

Customer:

I would be entitled to that even if I wasn't actually doing any work there?

Matt Jones :

Yes, you are still entitled to dividends as a shareholder. You wont be allowed to collect a wage of course if you are not working, but a divident is on the profit and you are allowed as a shareholder your due share.

Matt Jones, Solicitor
Category: Law
Satisfied Customers: 671
Experience: I am a qualified and practising Solicitor with over 7 years post qualification experience
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Expert:  Matt Jones replied 2 years ago.
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