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Ed Turner
Ed Turner,
Category: Law
Satisfied Customers: 1628
Experience:  Director and Consultant Solicitor (Self-Employed) at Ed Turner LLB Limited
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I have a question about ownership of a start-up and what

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I have a question about ownership of a start-up and what details I should and shouldn't have included on companies house database in relation shares and executive ownership of the business.
JA: Because laws vary by location, can you tell me where the company is registered?
Customer: In the UK. I have made myself a directors with significant control and another person as a director. Does this mean the other person who is also a director can take equity out of the business?
JA: Has anything been officially filed? If so, what?
Customer: Yes
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Me: director - Nature of control
Ownership of shares – More than 25% but not more than 50%
Ownership of voting rights - More than 25% but not more than 50%
Right to appoint and remove directors
Customer: replied 17 days ago.
Other person: director - and his nature of control ownership of share - ceased
Customer: replied 17 days ago.
But he is still active as a director
Customer: replied 16 days ago.
Hello?

Hello. I am Ed, a Solicitor qualified in England & Wales with over a decade’s experience in the legal profession advising clients.

I specialise in Commercial Contracts, Business Transactions, Employment, Dispute Resolution, Personal Injury and Road Traffic Law and shall be reviewing your legal problem today.

Regarding the site’s automatic offer of a Premium Service Phone Call, I shall be delighted to talk with you by phone to discuss your issue in greater detail if you accept the offer.

However, if you do not want a phone call, please cancel the offer for a Premium Service Phone Call and you will not be charged extra.

Directors and Shareholders are completely different positions in a company, although the positions are often occupied by the same people, especially in small companies.

Directors are Officers of a company, whereas Shareholders are Owners of a Company. Shares are property which you own as much as you own your house or car. They cannot be taken away from you at the whim of the Board unless there is something in the company’s bespoke Articles of Association or and/or a Shareholders Agreement with regard to “Good Leavers” and “Bad Leavers” which means that if you have to leave the company, you have to sell your shares back at nominal value rather than fair market value and therefore potentially lose money over the deal.

I hope this resolves your enquiry. Please revert to me if you require any clarification of my answer to your question and I shall be delighted to assist.

Otherwise, I shall be grateful if you will please mark your enquiry as “Closed” and give me a “Positive” rating to conclude this matter.

Kind regards

LawyerEd

Ed Turner and 2 other Law Specialists are ready to help you
Customer: replied 16 days ago.
Thank you.