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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 32086
Experience:  Over 5 years in practice
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We are a small limited company with a £150,000 turnover. There

Customer Question

We are a small limited company with a £150,000 turnover. There are four share holders, two of whom have non-voting shares and have never received a dividend. One of the later was made bankrupt but with a low debt level, and her shareholding was divulged.
A few days before the three year discharge, a man describing himself as a trustee of the bankrupt and supported by a solicitor is demanding £25,000 or he will wind up our business.
Is this legal blackmail possible?
Submitted: 3 years ago.
Category: Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
What do the company's Articles of Association say about the company having to buy back shares? Is there also a shareholder's agreement?
What is the legal basis for the court action? They can't demand money without some kind of reason?