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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3839
Experience:  Solicitors 2 years plus PQE
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I own exactly 50% of the ordinary (only) shares in a Limited

Customer Question

I own exactly 50% of the ordinary (only) shares in a Limited Company but the other shareholder is shutting me out and using the company as his piggy bank without my approval. Can I prevent him from taking money out? Also there is a dividend accrued on the monthly management account - am I entitled to half of that or does this need a majority board vote?
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
also note that the Articles are standard with majority vote needed for key decisions
Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Do you have a shareholders agreement? Kind regards AJ

Customer: replied 1 year ago.
Hi Alex As you might guess, no shareholders agreement
Customer: replied 1 year ago.
no board meetings or minutes - the other side refuses to engage
Customer: replied 1 year ago.
just to clarify, I am one of 2 directors, he is the other; no appointed chairman but there is a third party secretary
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. As a first practical step, I would write to the bank and ask them to freeze your accounts. Say the company is in dispute and no sums should be released with unanimous consent of the directors. Secondly in relation to the dividend, you need an ordinary resolution to release a dividend. Are the dividends voted on when they are declared by the board?