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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49866
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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My verbal contract with the majority shareholder has not been

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My verbal contract with the majority shareholder has not been honoured. It is a small company I have honoured my side of agreement for last 5 years and now realise I have been deceived all this time running the company single handed. The majority shareholder has just been banking the cheques and I have made best ever profit for company but she will not honour what she said.
Hello what has she not honoured exactly?
Customer: replied 2 years ago.
We agreed that if I ran the company for 5 years or until she decided to sell I would received a total of 12.5% of the whole of company including land and buildings if they were sold? I already had a 5% shareholding which my cousin gave me back in 2001, so I asked for a further 7.5% to make a total of 12.5% shares?
Customer: replied 2 years ago.
My cousin was her husband, who ran the company, I have worked there for over 30years and when he died the above was our agreement but not put in writing.
Thank you for your response. I will review the relevant information and will get back to you as soon as possible. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you
Many thanks for your patience. Regardless of whether this was a verbal or written agreement, you could still argue that it was a legally binding contract because the other party had made you an offer which you accepted and you placed reliance on that by doing the work and fulfilling your part of the deal. So if they have now refused to honour their part, you could argue that they have acted in breach of contract and can pursue them for compensation for losses arising out of that breach. In your case it would be the financial equivalent of the deal which they had failed to honour and it would basically amount to a sort of debt on their side.
Whenever a dispute arises over money owed by one party to another, the debtor can be pursued through the civil courts for recovery of the debt. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:
1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the debtor to voluntarily pay what is due.
2. Letter before action – if informal reminders have been sent but these have been ignored, the debtor must be sent a formal letter asking them to repay the debt, or at least make arrangements for its repayment, within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to recover the debt. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.
3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to Once the claim form is completed it will be sent to the debtor and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.
Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.
I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Hello, I see you have read my response to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? If your query has been dealt with please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. If you need further help please get back to me on here and I will assist as best as I can. Thank you.
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