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J.Ustinovskaya
J.Ustinovskaya,
Category: Law
Satisfied Customers: 28
Experience:  Expert
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I am seeking advice about a fellow director who has sent me

Customer Question

I am seeking advice about a fellow director who has sent me a letter of dismissal as if i am an employee, is demanding back company acquired equipment and turning up at my house asking for laptops and trying to remove me as a signatory from the company bank account. We are equal shareholders in a limited company - how should i respond in the first instance to his deamnds to hand back goods, and what are my rights to conotnue to draw a salary from the business, or dividends as we have several ongoing contracts with customers, brought in by me, which need ot be fulfilled. He has also email suppliers which introduced to the company saying i am no longer employed. He is using aggressive tactics to intimidate me including turning up at my house.
JA: Have you discussed this with a manager or HR? Or with a lawyer?
Customer: there is no HR, we are a compamy of three, he his wife and myself all equal partners in the business no cannot access lawyer until tomorrow but he has turned up at my door today and i need to repsond
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: as the original email says I AM AN EQUAL OWNER AND DIRECTOR IN THE BUSINESS NOT AN EMPLOYEE
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no just that a fellow director is trying to dismiss me as if i am an employee (and hasnt even done this correctly) when i keep reminding him that i am in fact an equal director in the business he is not listentin
Submitted: 17 days ago.
Category: Law
Customer: replied 17 days ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call.
Customer: replied 17 days ago.
Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 17 days ago.
I have waited a number of hours with no response
Expert:  J.Ustinovskaya replied 16 days ago.

Dear Client, shareholders of a limited company can remove a director by voting at the general meeting. 28 days’ notice shall be given to this director. This decision is taken by an ordinary resolution (more than 50% shareholders shall vote “for”). If the procedure is not followed, you may demand:

- damages in the amount of the salary for the notice period which depends on the time you have worked in the company (wrongful dismissal);

- compensation for dismissal for an unfair reason (unfair dismissal).

You also may submit an unfair prejudice petition to the court. As a result, the court may order to (1) purchase your shares at the market price (by other shareholders or by the company) or to (2) regulate the conduct of the company’s affairs in the future.

Hope this helps.

Customer: replied 16 days ago.
Unfortunately this doesnt answer the detail of my question
Expert:  J.Ustinovskaya replied 16 days ago.

If you hold the laptops lawfully and do not use the company's assets for your personal gains, you may keep them as you are still a director and still work in the company.

Expert:  J.Ustinovskaya replied 16 days ago.

Since they are in the majority, they will be able to dismiss you by passing an ordinary resolution, it's just a matter of time. Now it is up to you to decide how you would like to proceed to negotiate better terms of the compensation: through a wrongful / unfair dismissal claim or unfair prejudice claim. It depends on if you want to stay in the business as a shareholder (potential conflict) or if you want to sell your share of the business at the market price.