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As everyone knows, I am a hard working IFA and produce a lot of commission for my employer.  However, I have not benefited from the profits because my grasping non working spouse and minor grandchildren who own all the shares get all the dividends. I have to rely on a measly £2k p.a. And Working Tax credits (amongst other means tested benefits including an interest free student loan).

 

My Question

 

I have told all these shareholders that the Companies Act 2006 precludes minors holding shares in such form that entitles them to dividends, rights issues etc. They say (well, they would wouldn’t they?) that existing shareholders prior to Act day (which I believe was October 2008?) do not have to divest.

 

WHO IS RIGHT?

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By plummy1
17th Feb 2011 21:52

Dear Anna

Firstly can I say your spouse is a very lucky man. What I wouldn't give etc etc.

I have encountered the same situation and can give you some advice on what hot to do.

Do not attempt to ignore the will of your shareholders. You will normally find them very organised and masters of negotiation. In my experience they are more willing than most to play the emotion card in any negotiation.

Eventually I fell out with my major shareholder and found that I was in danger of losing many of the assets I had built up. The resulting legal battle was also v expensive. Much better to appease your shareholders.

A visit to any public house will find many people in a similar predicament hiding from said shareholders. 

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