Our company is called The Bark Park – registration number – 9051859 I was made redundant last year and decided to set up a small business with a friend – we did not enter into a shareholder agreement, there is nothing in writing.
We were both initially Directors and both invested £10K in the business to set it up.
We both worked at the business without taking a wage for 6 months.
After some time it was apparent that I could not continue to do this as my redundancy was running out and my friend and I did not see eye to eye and things were not great. She suggested I resign as a director and keep my shares which I did, stupidly but I was bullied into this as without enough knowledge otherwise. She is still a director and shareholder.
When we set up the company we used accountants to set this up and we both were given 1 share each at a cost of £1 – therefore we were 50% shareholders each.
I still have £10,000 invested in the company for which she has agreed was a directors loan, the company is paying me back at a ridiculous £25 per week as she says that’s all they can afford.
Can you tell me the following:-
Am I classed as a 50% shareholder is just 1 share?? Am I classed as a part owner? She says im just a shareholder have no rights.
If I want to sell my shares I have to get her to agree apparently – she told me we have to have a meeting and vote but there are only two of us so how can we vote. Therefore who has the vote at a meeting – deadlock ?
The agm she will present the accounts and I believe it will be very unpleasant – how can we vote if we both disagree ? who has the say over who?
She is looking at adding another investor – can she do this without my permission, can she dilute the shares without my permission.
Can I ask for independent accounts audit as I don’t trust her accountant or her.
I note that she has used the company bank account to pay for fuel and paid herself a wage in December after I left – can she do this ?