We act for a limited company and the two original directors/shareholders. Back in March 2018, they had a serious cashflow problem and an old friend of one of the directors loaned the business £50,000 and became a director and shareholder with each owning a third of the shares. A simple agreement was written up stating either party could give 6 months notice for the repayment of the loan.
Over 2018, the relationship between the original directors and the new director became strained resulting in the new director requesting his £50,000 be repaid in six months time. He initially offered for the loan to be put on repayment terms provided the other two directors gave personal guarantees. They are refusing as it was a loan to the company and don't want to take the risk. The credit rating for the two original directors is poor and they can't obtain funding from elsewhere.
The new director, to put it bluntly, isn't the sharpest tool in the toolbox. He has trouble understanding anything financial and his emails are barely understandable. He has asked for payslips for the £400 he was drawing weekly from the business during the summer and couldn't understand that he was being paid a monthly salary of £702. I went into detail regarding director current accounts, dividends etc. He has taken legal advice regarding the situation with the other two directors which verifies all advice we have given but he is now being aggressive in his emails. He is making accusations that my practice is 'ripping him off' from £50K and I won't like his reaction. I have informed him that due to his aggressive attitude he is not welcome at our offices. He implies as he is a director of the company he will come when he wants.
He isn't engaged as a client individually and my initial thoughts are to contact his solicitor and inform him that we do not act for him.