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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I invested 10K into a small business with a partner in May

Resolved Question:

I invested 10K into a small business with a partner in May of last year which is money I had received as redundancy (so I am jobless). Sadly the partnership did not work - even though the business is working - we cannot work together so I was pushed into resigning as a director (there are only 2 directors me and the other party). I retained my 50% shares in the business its a limited company. My problem is I want to be bought out of the business but not sure of my rights.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

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

Alex Watts :

please let me know whether you have a Directors/Shareholder agreement?

Customer: No unfortunately not the company was set up by an accountant company name is***** and co ltd if that helps
Alex Watts :

Do you have anyone who wants to buy?

Customer: Only the other director if she wants but I guess she does not have to. Can I sell to someone else
Alex Watts :

In short yes

Alex Watts :

You can resign as director but will remain a shareholder.

Alex Watts :

You can sell your shares to anyone

Alex Watts :

Ideally there should have been a shareholder agreement which gives your ex first say on the shares, but that is not the case

Alex Watts :

So yes you can sell to whoever you want and there is nothing the other shareholder can do

Alex Watts :

Can I clarify anything about this today please?

Customer: How can I see that I still have the shares as it does not show me any details on company's house and their accountant did not send me anything when I resigned as director so I am worried they will try to cheat me :(
Alex Watts :

You can ask your accountant to confirm this.

Customer: She works ex so won't help me - if I get a new accountant can they do this is that what u mean ?
Alex Watts :

yes

Customer: thank you Alex - have a good evening :)
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