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I wil try and help
Do you have a directors contract of employment?
No i don't belive so
Do you get a wage from the company?
Both directors pay themselves a small wage plus dividends, these end up being paid every 2 weeks.
how many others are employed?
there are approx. 12 employees at different levels within the company, one employee has recently been promoted to position of manager and has taken over some of my duties.
sorry could you bear with me 10 minutes. PLease post your reply and I will come back to you.
also how long have you been employed/a director?
I started up the company in 2009, I have been employed/director since this date.
I am back
sorry about that
just putting my daughter to bed :)
Are there any others in line or just you? what justification is your brother in law putting on making you redundant?
are you still there?
, no others in line , as the majority of our work is in Devon and not around our existing head office in Northants this seems to be his reason
well it seems you have 3 hats on in this situation, that of shareholder, director and employee. As far as the "employee" status is concerned you have been employed time to have the protection under the Employment rights act. Whilst redundancy is a fair reason such a decision should be handled fairly and so it may be that you have a case dismissal against your own company. As a director (assuming you both have equal decision making ability under the terms of the company details) then, whilst your brother in law can make a decision to make you redundant you have an equal voting right to vote against this decision.
as far as a shareholder this obviously cant be taken away from you and so you would still be titled to receive a dividend from the profits.
Does this answer your question?
Please feel free to ask questions.
how can I ensure that dividends are payed and not just re-invested into the company?
you are entitled to attend an annual general meeting yearly to agree the payments of dividends and you are entitled to see the accounts. If dividends are not payed equally the directors will be in breach of the Company Act 2006.
there is often a portion of the profits put back into the company to ensure its continued grown, but again this has to be agreed.
Ok thanks, ***** ***** the position a bit clearer.