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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I am 1 of 3 shareholders in a company I have 38% of the shares. There

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I am 1 of 3 shareholders in a company I have 38% of the shares.
There is one director that owns 38% and another director that owns 38% and another shareholder that owns 24%
I was a director until a fall out with the other director last week .
The 24% shareholder was also a Director until recently.
We know that the director is planning on starting a new company to channel the work into so she can make our investment worthless and close it. If I join up with the other shareholder can we vote the other director off and vote for the other shareholder to take over as director ?
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.
Hi there. Thanks for your question. My name is ***** ***** I can answer this.
Unless there are restrictions in the company articles that prevent you from doing this, then yes, you can.
However you should be aware that if you do this, then unless you have an agreement with the director/shareholder concerned that they will not compete with the company, then hey may be able to do this as there would be nothing expressly stopping him from competing. He owes duties as a director not to compete but if he is no longer a director then he will not owe such duties to the company.
If he needs to take confidential information to compete though then this is still likely to be protected if he acquired that information solely by way of his position in the company.
I hope this answers your question. If so please remember to rate the answer as highly as you can for me.
Regards
Tony
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