How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask F E Smith Your Own Question
F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9680
Experience:  I have been practising for 30 years.
18203470
Type Your Law Question Here...
F E Smith is online now

In a company that has two equal shareholders (50%) can one

Resolved Question:

In a company that has two equal shareholders (50%) can one of the directors resign the other through companies house without his knowledge and change the trading title also without his knowledge
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

I assume that the 2 directors are the 2 x 50-50 shareholders.

Removal of the director can only be done in accordance with the Company Articles or in accordance with any service agreement. In the absence of any of that, directors can only be removed by a Special Resolution at an Extraordinary General Meeting of shareholders and the Director has to be given notice of the resolution and the opportunity to reply. If there are only two shareholders, each holding the same shares, then it’s virtually impossible to remove a director without a court application.

Regarding the change of trading name, (I assume you mean trading name and not the name of the company) there is no legislation with regard to a trading name and what it can and cannot be and whether it can be changed or not but the capacity to do that would be in any director service agreement. It is unlikely that the director has the power to do that.

To change the name of the company would require a special resolution and to be voted on by the shareholders.

Can I clarify anything for you?

Please don’t forget to rate the service positive. It’s an important part of the process by which experts get paid.

Best wishes.

FES

F E Smith and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Hi thank you for that.My business partner has changed the company name with the same company reg no through companies house, as I did not resign from the original company would I still be a director of the new titled company