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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11155
Experience:  30 years as a practising solicitor.
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Am former Ltd company director who employed wife As on other

Resolved Question:

Hi. Am former Ltd company director who employed wife As on other occasions I did not seek formal approval from other directors but had previously had verbal agreement to manage the business as I wanted. She was set up as employee...not cash in hand....but now other directors are complaining. Thete is nothing in articles of association etc about recruitment processes etc. Do they have a case against me under company law? ?
Submitted: 10 months ago.
Category: Law
Customer: replied 10 months ago.
I resigned as a director and my wife ceased working at same time but now they are saying the employment of my wife was wrong and treating to take me to court.
Customer: replied 10 months ago.
The other occasions was I did briefly employ another person and the other directors didn't complain or raise objections. I did not seek approval then and they knew as they send me his P60 etc. This was about 6 months before I took on my wife.
Customer: replied 10 months ago.
One last think which us related. As a result of this dispute they have refused to repay my directors loan of nearly 7000 ukp which I have requested on numerous occasions
Expert:  JGM replied 10 months ago.

What is their complaint and did they complain at the time when you employed your wife?

Customer: replied 10 months ago.
1. No formal complaint yet just letter from their solicitor say thing going to peruse complaint against me....without details.
2. My wife employed in May....they objected in September . I did not seek approval prior to appointment but she was salaried so not hidden etc.
Customer: replied 10 months ago.
I employed her to work on a project. She had necessary experience in my opinion but the other directors now say she was not a suitably qualified person for the role
Customer: replied 10 months ago.
The person managing ( external company ) the project has written to me saying he had no concerns about my wife's contribution to the project
Expert:  JGM replied 10 months ago.

If you had the power to appoint her and your wife did a job for the company that the client was happy with then I don't see what the issue is. You can let me see the solicitors letter if you wish but I would resist any claim here, certainly from the narrative you have provided to me. Happy to discuss further. I hope that helps. Please leave a positive rating so that I am credited for my time.

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Customer: replied 10 months ago.
Hi ...will rate you don't worry t stars...just a quick follow up in terms of does a director legally have to inform othercdir
Customer: replied 10 months ago.
Ahhhhhh other directors that they are recruiting ? Is the fact that it's my wife mean I should have legally ?
Customer: replied 10 months ago.
I have not had any official solicitors letter outlining the allegations etc so I am just trying to prepare my thoughts.
Expert:  JGM replied 10 months ago.

There's nothing in company law to say so. It would be whether the company has any rules about authority when recruiting.

Expert:  JGM replied 10 months ago.

The other point is that if they didn't object at the time yountook her on and she did the job without complaint then you can argue that they acquiesced in her being appointed.