Hi there
If there are 2 directors in a company, one wants out, can he force a liquidation if he owns 50% of the share. If the other director refuses to get out, does the director have any responsibility to the company to work for it short term. Can he just start another company and take his clients with him?
Thanks in advance!
Jay
Replies (5)
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Taking clients with him would most likely be a breach of his duties as director to that company. Especially if any creditors are owed money.
Can't he just buy his shares?
A 50% shareholder can't wind up a company without the agreement of the other shareholder as a winding up requires a special resolution (75% majority).
They need legal advice to resolve their dispute. It may be a good candidate for mediation. What do the Articles say about pre-emption rights and the basis for arriving at the price to be paid?