How to get rid of useless Shareholder???
I’ve set up a company with a partner. We hold 50% of shares each and we are in our first year of trading. I’m the only Director. The partner have been near to useless since we incorporated… I wanted to buy his shares but he’s not responding to my calls Can I buy his shares without him around or is there a way to get him out of shareholding…. I don’t want to keep working and someday, he just come and claim half of what I worked for… Our article of association doesn’t state anything in regard to share sale.. Please let me know your thoughts
It could be quite a lot of hassle to get rid of him if he is not going to co-operate. In general you need over 50% to do anything without the other parties’ consent and if he just doesn’t turn up you may run into a problem of needing two directors / shareholders to be quorate at an official meeting.
It may well be better to simply start a new company and slowly transfer the business over. If he is not even answering calls he won’t bother you and you can easily manage the process with clients on a gradual basis.
Andy Pearson Business start-up blogger www.business-beginnings.org
For future reference you may want to draft up a agreement detailing what each partner role is and what they are expected to do also deciding how many shares that each partner receives. It is best to try and get more shares rather than a 50/50 split to avoid issues of this matter.
(Accounting Help) www.accounting-help.co.uk