That is always the problem where there is a 50/50 split of shareholdings and a dispute. You may have to approach a solicitor with a view to applying to the courts to wind up the company. Before that though you can demand an audit under s478, Companies Act. 2006, an application the other shareholder cannot refuse. This will expose any activity within the company.
Hello and thank you for your response.
Where I demand a full audit under section 478, do I apply to the court to demand he does this?
I am happy to wind the company up; but how do I do this as I thought I had to have a majority of shares to petition for such an order? I only have 50%
You merely give the company notice that you require an audit under the Companies Act, 2006. There is nothing the director can do to oppose this, it is any members' right, however small, to demand an audit under s. 278. It might be adviseable to inform Companies House of the application also to preclude any 'under the counter' shenanigans.
As you realise, as a 50% shareholder, you are in a cleft stick, but with this sort of an impasse the Court can direct a winding up. Perhaps the demand for an audit, not a cheap exercise, might concentrate the other side's mind wonderfully.
Thank you for your support.