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Ross Miller
Ross Miller,
Category: Employment Law
Satisfied Customers: 813
Experience:  Director (Litigation and Mediation) at Hilltop Solutions
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I have some problems with my business partner. We both are

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Hi there. I have some problems with my business partner. We both are the company's directors
Customer: replied 5 months ago.
I've been waiting longer than the time you have promised. Will someone get back to me soon pls. Tq

Hello, hopefully I can help. Would you be able to give details of what the issues are.

Customer: replied 5 months ago.
Hi there. I have a problem with my position in my company. I need to know my rights as a director. I've discussed with the other director about closing the company last September as he decided to go separate way
Customer: replied 5 months ago.
I'd rather msg so I can show him in the meeting which will take place today at 4pm

What rights you are looking for specifically find out about. Do you own equal shares of the company and are you both in agreement about dissolving the company?

Customer: replied 5 months ago.
We both directors and have equal share.
Customer: replied 5 months ago.
I had injuries in October and my gp to me to rest. And when I came back in March, I found out the the company still running and he get clients and income from it till now. But there no work or income from company for me
Customer: replied 5 months ago.
I would like to kno my rights with the liability in term of profits and wages, sick pay and redundancy
Customer: replied 5 months ago.
Also the rights of assets ie tools

Ok, thank you. If the company is making money in your absence, as a director you are still entitled to your share of any such profits, so long as there is no clause in your partnership agreement stating otherwise this should be relatively simple to sort out as you will have share allocations which determine how profits and dividends are to be split. In terms of sick pay and redundancy, this will depend on how you operate the business. If you are running a limited company and you are classed as an employee of said company then you will be entitled to (at a minimum) Statutory Sick Pay, you may be entitled to additional contractual sick pay if you are an employee agreement stating this, if not then you are still entitled to the statutory minimum. In terms of redundancy, any such payments would be paid out from the company profits, therefore you can just take this as your dividend instead of looking at it as redundancy payment. It may be advisable to speak with your accountant to see what is most tax efficient for you. In terms of tools and assets, on the assumption that these were purchased with company funds, then again you would be entitled to your percentage of these or the equivalent monitory value if your partner wishes to keep the items for themselves personally. Some of the above may be subject to variation depending on what is set out in your partnership agreement. Please also remember that you will be entitled to any money back you have paid into the company from your personal funds as a director's loan. This is usually tax free however, I would strongly advise speaking with your accountant to ensure everything is done legally.

Has this answered your query?

Customer: replied 5 months ago.
I already told my accountant to take my name off the company house. When I'm not a director anymore it means I am not liable to any company debt. Am I right?

Sorry for the delay. Is the company a limited company?

Customer: replied 5 months ago.
No worries. Yes it is a limited company

As it is a limited company, any debts owed are at the liability of the company itself. Outstanding debts will require to be paid with the company's money. If there are insufficient funds and a liquidator becomes involved then they can offset debt with the value of any assets owned by the company (depending on the value obtained for each asset). However, to answer your question, you would not be held personally liable for any debts owned by the company. Has this answered your query for you?

Ross Miller and other Employment Law Specialists are ready to help you
Customer: replied 5 months ago.
thank you

Thank you. Ensure that you look over your partnership agreement also. If you have further concerns after your meeting, or there is dispute you may require to enlist help from a local solicitor. I hope this matter has a positive outcome for you.

Customer: replied 5 months ago.
Many thanks for your help

You are more than welcome

If you could indicate that you have accepted this answer and leave a rating for the quality of advice that would be very much appreciated.

Kind regards.