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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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Where I am a 50% shareholder and not working in the

Resolved Question:

Hello. Where I am a 50% shareholder and not working in the business where the other 50% shareholder does and is also the sole director,; I belive he is taking out profits from the company for himself. Now, without going through the action of a dirivitive claim or expensive legal action. How can I as a shareholder demand that the other shareholder shows me the bank account statements etc so I can see for myself as evidence that he is taking out profits of the business for himself as a dividend, where he should be sharing this with me. Any advice?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi thank you for your question and welcome my name is ***** ***** I will assist you. Do you know where the company's accounts and bankers are? Does the director pay himself a salary? Kind regards AJ
Customer: replied 1 year ago.

The accounts from last year I have. Yes the compnay banks with HSBC. He pays himself a minimum salary of 10k and the rest is a dividend

Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Without a court application or reaching a mutual agreement with the shareholder there is no forceful action you can take. You could consider asking the bank to suspend the banking mandate and ask the company accountants for the company accounts - but this action will only delay things. If he has been taking dividends without properly declaring or passing a shareholder resolution you need to sue. Going forward would you prepared to continue working for him, or would the best option be for him to buy you out?
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