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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Situation: When I started with my company my salary was

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Situation: When I started with my company my salary was £80K. I was given shares in the company equating to 10%. I paid £10 for these shares via a bank transfer. The way in which I receive my salary monthly, is split into a small portion through PAYE and
the majority by a DIVIDEND payment. As the company was not doing well I agreed to a 10k pay cut down to £70k some 18 months ago. This 10% difference in salary has been accrued so that when the company was on a more even keel,it would be paId to me. So I have
been on 70k for the last 18 months. My pay at the moment is £654 (PAYE) and £5179.33 (DIVIDEND) per month. The company has now run out of money but currently has an overdraft of £100k. I was asked by the founder (80% shareholder) to either inject cash into
the business (£50k) or work without pay. I am not willing to do either and wish to leave with the most amount possible. My questions are: 1. If I were to be made redundant, is it correct I would only receive a redundancy package based on my PAYE of £650? 2.If
I resign is it possible to take my notice period salary still as the above PAYE/DIVIDEND split or would I have to revert back to taking it all in PAYE? 3.What is the position as we regards ***** ***** back payments from when my salary was reduced from £80
to £70K? 4.Do I have to surrender my shares, and if not, can the majority shareholder buy them off me? Thanks for your help
Customer: replied 2 years ago.
I understand this is more than one simple question and am prepared to pay more for your answer if you can please help me.
Hello my name is ***** ***** I will help you
Do you have any form of shareholders agreement please?
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Do you have a number we can chat on? What would be the best time to call?
Customer: replied 2 years ago.

Hi I can chat now. My number is ***** 824030

Customer: replied 2 years ago.

Hi Alex. Thanks for earlier.

If I gave up my shares and had all my salary paid PAYE for 1month, could I then resign at the end of that month, hand in my notice and be eligible to have my notice period paid out on a PAYE basis? If not, how long would I have to wait?

It really depends what is in your contract. As you dont have one, this presents some difficulty.
Customer: replied 2 years ago.

My contract of employment us based on PAYE but I have no shareholders agreement or documentation in writing, only a share certificate.

So my question is, if I were to forfeit my shares and go back to PAYE, how long would I have to work under this arrangement before I can resign and be paid out on the full PAYE basis?

It would be based on your last few months, but if you resign then you are only entitled to notice pay.
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