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shareholder 15% & MD they want to make me redundant! PDF Print E-mail
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Written by Gary Marsden   
Friday, 22 May 2009

I am a shareholder 15% of a company and Md/Director. The other shareholders are 50% VC and 35% chairman. The chairman wants to make me redundant as the company can not affor to keep me as he put it. I am the only director that works full time in the company there are no other managers. Can anyone advise me on the following.

 

Can he make me redundant? also he wants to do this with only a months notice period, although there was verbal agreement and some initail proposed agreements to 6 moths notice. but no service agreements were ever made.

Can he remove me as a director.

can he force me to sell my shares.

 

 


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  Comments (1)
1. Written by ndhart, on 13-07-2009 10:41
Quick answers: 
 
 
1 Can he make me redundant? No, but the board can by simple majority (and you will not be allowed to vote unless by concession) 
 
2 also he wants to do this with only a months notice period, although there was verbal agreement and some initail proposed agreements to 6 moths notice. but no service agreements were ever made.Unless the board apporved a variation, you would have to rely on the Employment Tribunal to get more  
 
3 Can he remove me as a director.This can only be done by shareholders, but only 51% votes are needed. You can vote for yourself. 
 
4 can he force me to sell my shares. Not unless the articles say so.

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