Shares in my Ex Partners Company- No Dividends?

I have shares in my ex partners company, a 20% holding, but no dividends

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I have a 20% shareholding in my Ex partners company. In trying to establish the value of these shares I found out from the full accounts that in 2014 and 2015 dividends were paid of which I knew nothing about. These were paid, according to his solicitor, to a director as part of his remuneration package, and that no other shareholder recieved any dividends. I am told by his solicitor that the company is not in a position to pay these dividends and that my ex partner has a directors loan to the company.

As I am trying to establish a claim for settlement I am trying to put together what I consider due to me. At first I thought I would just get the value of the shares, as I believe my ex will want to purchase them back from me, but now I am wondering if those dividends are due to me, and since the company has been trading since 2009, I don't know if dividends were paid before as I only have full accounts from 2015. I have written to the 'accountant' with the company to ask for full accounts for the company's history to ascertain if other dividends were paid, but have had no reply. I am concerned as of course my ex partner has a 60% shareholding and seems to be able to call all the shots!? 

My question is am I entitled to my 20% from those years? All the shares are Ordinary shares. 

How do I work out what I might be entitled to? The "Profit Attributable to Shareholders" in both years was over £200,000 the director who recieved dividends those years got appoximately 17.5% of that - both years. His shareholdiing at the time was 25%. 

What are my rights? 

Many thanks 

Replies (4)

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By Accountant A
12th Aug 2018 13:20

Thanks for the question BarbaraS. My apologies, but as this is a forum for accountants to discuss issues from the profession, I'm not going to answer.

The sister site UK Business Forums has a specific accounts and finance section where your question is likely to find a more receptive audience.

https://www.ukbusinessforums.co.uk/forums/accounts-finance.55/

Hope that's helpful.

Thanks again and best wishes,

AA

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By johngroganjga
12th Aug 2018 15:27

You will probably need a solicitor’s help with this.

You are entitled to the full accounts of the company for every year since you became a shareholder.

When you have the full accounts you will be able to see what dividends in total were paid in each year. If all the company’s shares are of a single class, and you are right that you hold 20% of them, you were entitled to 20% of those amounts.

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By johngroganjga
12th Aug 2018 15:28

Duplicate

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By Mr_awol
12th Aug 2018 22:02

Why do you refer to the accountant in inverted commas?

Perhaps more importantly when did you split up? If you’re going after pre 2015 dividends then the chances are these are already in the pot you are fighting over.

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