Legal Question in Business Law in United Kingdom

I was dismissed as a Director that I have a 49% share in last year. There was no reasonable grounds for my dismissal so I sought the advice of a lawyer.

He convinced me the best route to go down was through an employment tribunal.

I was awarded a judgement for not paying of holiday and no notice period etc, but the tribunal was suspended when the MD of the company informed the panel that he had made a complaint to the Police about my behaviour.

After investigation by the Police no charges or any further action will be taken.

In the mean time a demand has been served on the company for the original judgement and as yet nothing.

The next and final date for the tribunal is in a few weeks.

In between all this the MD of the company has as far as I can make out, started at least 3 other companies using nearly the same name as the original and in my opinion asset stripped everything from the original and left me with a 49% of an empty shell.

Any advice would be appreciative.

Allan


Asked on 11/06/10, 6:51 am

1 Answer from Attorneys
Richard Howard Richard Howard & CO

If you have been excluded from management and the company�s assets have been dissipated unlawfully then this may constitute a fraud on the minority shareholders. In these circumstances you may be able to ask the court for leave for the company to sue the fraudulent shareholder and any other companies to whom the assets may have been illegally transferred.

These proceedings, known as derivative proceedings, are fairly cost intensive and you would need to weigh up whether the assets that could be realized justify the expense.

You should go back to your solicitor for further advice about whether you can bring derivative proceedings or alternatively whether you can petition the Companies Court under Section 994 of the Companies Act 2006 which allows the court to make orders between shareholders that are in dispute.

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Answered on 11/12/10, 3:34 am


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