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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 12290
Experience:  Barrister 17 years experience
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I am company director with 20% shares, majority shareholder

Customer Question

I am company director with 20% shares , majority shareholder has offered me a alternative role to the one I was doing , this has come with substantial pay drop, do I have any rights with regards ***** ***** I receive or protection?
JA: Where are you? It matters because laws vary by location.
Customer: I’m in Worcestershire
JA: What steps have you taken so far?
Customer: I have had a meeting about new role asked for my pay to be addressed as not happy with the drop and asked for title to be altered
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no I think that is all for now
Submitted: 6 days ago.
Category: Law
Expert:  Buachaill replied 6 days ago.

Hello, and thank you for your question. I am your Expert and I will provide the answer you require.

Expert:  Buachaill replied 6 days ago.

1. The first point you need to realise is that the issue of dividends is totally separate from any role you occupy in the company. So, although you have been offered an alternative role in the company, this will not affect your entitlement to dividends. You will still get 20% of any dividend declared. However, the company must have distributable profits and a dividend must be declared, for you to receive your entitlement of 20% of dividends. However, your change in role will not affect the amount of dividends you receive from the company. These will remain at 20%. However, you should seek a role you are happy with, as this will form your employment contract with the company, which is separate from both your role as director and your entitlement to dividends.