Shareholder Requesting Formal Audit

A shareholder with 10% of the shares in a company is being frozen out by the 2 Directors. All shareholders used to be paid a dividend, but this shareholder has not received one for 2 years, and hasn't received a copy of the accounts, apart from abbreviated accounts. Shareholder assets have dropped significantly year on year but there is no detail in the abbreviated accounts. The Directors have a lavish lifestyle, so unless they've won the Lottery, where is their income coming from? Suspects something fishy!

Can the shareholder demand a formal audit of the accounts?

Will it show where shareholder assets have gone?

Comments
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Accounts and audit

davidwinch |
davidwinch's picture

Just because you can does not mean you should

Roland195 |

I can see where this will go...

louisVW4 |

simple solution

Tosie |

Is it really "perfectly leagal"

tonycourt |

Notice for audit

Sarah Alker |

Once again...

WhichTyler |

May be Legal but could be Unfair and Prejudicial to minority sha

Hombre |

how does this work in practice

pearce75 |

Unfair prejudice or Fraud ...or both?

louisVW4 |