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?