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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3762
Experience:  Solicitors 2 years plus PQE
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Dear Sir/Madame,Based on the case below:Q1. Can you

Customer Question

Dear Sir/Madame,
Based on the case below:
Q1. Can you confirm whether or not Shareholder 1 would be entitled to renuemeration as an employee that does additional work for the company that is not related to being a director even though he does not have an employment contract with the company he owns?
Q2. And If Shareholder 1 is entitled to renuemeration as a director that does work for the company that is not related to being a director, as Shareholder 1 has not received any remuneration over the course of 20 months, what steps could shareholder 1 take to recovery any loss of earnings as according to adviceguide.org.uk "Your contract of employment cannot take away rights you have by law".
See case scenario below:
* Shareholder 1 & Shareholder 2 have 50% equity each in their jointly owned limited company in the England, UK.
* Shareholder 1 & 2 are both also the Directors of the company.
* Shareholder 1 is the Cheif Executive Officer & Shareholder 2 is the Cheif Financial Officer
* Shareholder 1 also does other work that is not related to being a director. Examples include office secretary, day to day client facing work, staff management, website development, publishing administration amongst other non Director duties.
* This additional work that Shareholder 1 does that is not related to being a Director means that he does on average, 80% more hours per week than Shareholder 2 who predominantly only does Directors work.
I look forward to your response,
Kind Regards
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Alex J. :

Hi, Thank you for your question and welcome. Without a contract there is no right to remuneration for employment as either a shareholder or director. If you want to be retrospectively paid for work done, then you have to have the approval of the company (and accordingly the approval of your fellow shareholder).

Alex J. :

What would your fellow shareholder do if there was no one to do the work you are currently doing? Would he approve remuneration?