I'm the only employee (and 20% shareholder) and have been sent a possible redundancy letter stating due to the Covid situation. The director is still taking dividends and directors loans. It it legal to make me redundant on this basis.
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Yes probably but you need to speak to a solicitor (and read your employment contract and shareholder agreement).
Unless you have some separate agreement, employment rights and those of shareholders are entirely separate.
Are your shares a different class to those of the director? If not, you should also be receiving dividends.
Your shareholding and company profits has little to do with whether or not your position is now redundant.
If you are a shareholder, you’ll also be ‘raking in’ 20% of those dividends.
If you are a shareholder, you’ll also be ‘raking in’ 20% of those dividends.
Not necessarily............... all depends on whether there is just one class of share or not
Well, given John’s latest comment we are supposed to give simplistic answers based on the limited info provided and not press for further info.