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RJM Law
RJM Law, Laywer
Category: Employment Law
Satisfied Customers: 3756
Experience:  LL.B (Hons)
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I am 1 of 3 directors of a company. I handed in my notice

Customer Question

I am 1 of 3 directors of a company. I handed in my notice along with one other director recently. Our employment contract stated one month notice. We are 2 weeks into the notice period. We asked to meet asap with the shareholders to agree on a continuity plan such as staying on as consultants. Theyhave not responded and instead have started legal action against us (in the sense they have just issued a pre-action letter, so not formal action yet). We have offered to extend our notice period for at least 4 months and probably longer (subject to negotiation). We are worried that their intention is to not accept our extension and let the company fall apart, so they can try and blame us.The remaining director is being led by the shareholders and cannot form a quorum on her own. In case of relevance, the remaining director is also due to go on maternity a week after our current notice period is due to expire.My specific question is: can we, as the 2 directors in our notice period, resolve to accept our own extenstion of notice period? A quorum of directors is 2 of the 3 of us.If the answer is no, would it make any difference if we revoke our resignation instead? i.e. can we accept the revocation as a board in these circumstances? This is not our preferred option but if it is any different to extending, we would consider it.
Submitted: 10 days ago.
Category: Employment Law
Expert:  RJM Law replied 10 days ago.

Hello, and thank you for choosing our service today.   I am the expert who shall assist you with this matter today.

Please note that our service is conducted through emails and from time to time there may be a delay between answers and responses, this is due to the expert availability at the time.  If you do not receive a response immediately, please be advised you will receive one by the end of the day

I will be able to provide you with guidance in relation to your question.  However please note this does not form a professional client relationship and we cannot provide representation, however, I would be hopeful that my guidance will be able to assist you.

Thank you

Customer: replied 10 days ago.
thanks that's all fine
Expert:  RJM Law replied 10 days ago.

Thank you essentially yes you can do this.  Contrary to believe, a notice of termination cannot be rejected.  Therefore if you simply revoke your intention to terminate the contact, and accept as a forum then you are not breaking any laws.  This will also be a sensible action as directors of a company have an implied (in not expressed) legal fiduciary duty to the company therefore by doing this you are acting in the best interest of the company then again you have legally protected yourself.  An extension of notice is outwit the contract (not that it is highly relevant) however if your revoke the termination notice and accept as a quorum then I believe you should be fine.   It may be advisable to have your contract evaluated.

I shall provide you with a helpful link that will assist you in finding a solicitor/representative near your local area.  This will provide you with someone nearby your area who can assist you if required.

I hope this information proved helpful.  You will find a local solicitor who deals with these matters on the law society webpage which is as follows;

https://solicitors.lawsociety.org.uk/ (England)

https://www.lawscot.org.uk/find-a-solicitor/ (Scotland)

https://www.lawsociety.ie/Find-a-Solicitor/Solicitor-Firm-Search/ (Ireland)

https://www.lawsoc-ni.org/solicitors (N. Ireland)

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

Should you require any further assistance on this matter, please do not hesitate to post a further questions for additional assistance.

Kindest Regards.