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Jo C.
Jo C., Barrister
Category: Law
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Experience:  Over 5 years in practice
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My name is***** am a company director with 51% of

Customer Question

Hi,
My name is***** am a company director with 51% of the shares. i started the business in 2008 and in Feb 2015 foolishly took on another director (luke) who has 49% of the shares.
We have no signed protective agreements in place other than companies house and initial investments stated via accountants.
Luke also had a company which had a small turn over and as part of the initial investment i became a 49% director of his business + £14000 cash. Luke took the decision despite my constant nagging to try and grow the business to close this back in august 2015. since then i had to invest a further £2500 of business money to retrain luke so as to try and make him a benefit to the business. unfortunately luke has shown to be incapable of sustaining a level that makes the business money (actually costs more in foul ups) and has lost customers due to attitude and poor quality of work.
But most importantly, we have been requiring a business overdraft and possible loan to progress the business also we have been sub leasing of business premises to which we now need to go directly with landlords which is along with the bank require a credit check.
Initially Lukes credit was good (in 2015 when we started the joint limited company bank account) but upon trying to gain an over draft facility in december 2015 was bought to my attention that luke credit rating would nopt allow the business to be accepted.
We have 2 other full time employees and in december being strapped for money in the accounts i personaly had to borrow from my Mother £11000 to cover Luke and other employees salaries and rent etc me not taking a wage.
I offered to buy luke out of the sign business by giving him £5000 back and starting a seperate company which he would be 50% director and initially would continue to get his current wage which is equates to £1000.00/month (666being wages rest made up by dividends).
last week of march 2016,There was a verbal agreement and after our discussion luke proceeded to choose a new business name and asked me to register it with the accountant and companaies house. Elite Window films.
on the 4th april 2016 Luke supplied our office manger (Wendy) with the sort code and account number for the agreed sum of £5000 to be transferred to. upon receiving the money Luke then proceeded to change the verbal deal we had and refused to sign the the shares back to me as agreed. and to remove him from the current sign company bank account.
The company accoutant as i authorised the paper work to be drawn up for luke to be removed as verbally agreed and the company house details for the new business to also be drawn up.
On thrusday 14th april un aware to myself luke sent a threatening with solicitors email to the accountants for removing him from companies house without him signing anything along with asking for figures of business worth and accounts situation.
I would just like also to state that i have concerns about Lukes conduct towards our female member of staff and towards female customers to which i had to deal with a complaint internally.
I have spoken to him on a number of occasions due to similar matters.
He has became a liability and a tombstone around my neck.
I do not wish to enter into any business arrangements with luke i just want to remove him from employment and shareholding as the business is now starting to suffer badly.
Submitted: 7 months ago.
Category: Law
Expert:  F E Smith replied 7 months ago.
Please confirm that you were paying £5000 for his shares. He has had the £5000 but now is refusing to transfer the shares. Is that the situation?Did the threatening letter come from solicitors or were solicitors copied on it?What do you want to know about this?

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