My husband was a director and shareholder of a private limited company. He held 20 shares, along with another director/shareholder. One other person held 10 shares and the managing director held 150 shares of another type. Total 200 shares.
he resigned in February and the company has now submitted its confirmation statement to companies house but this shows that my husbands shares are 40 and that the overall number of shares has increased to 220
why would they have done this and what implications could it have for my husband?
p.s. Sorry about the tag on this, my pad won't let me see the full list.
Replies (7)
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It is absolutely impossible to give any sensible comment without detailed knowledge of the situation.
I would suggest your first port of call would be the company and the company's statutory accounts (to which, as a director and shareholder, he should be entitled).
@Willow, unfortunately there are crooks in all walks of life - but, under the law, the company is legally separate from it's owners.
The company has various duties and obligations to it's shareholders - which are to be carried out by the directors.
If the company fails to do this, then, ultimately, legal action will be required to force it to comply.
That does, naturally, incur a cost.
I wouldn't complain too much - your husband seems to have doubled his stake in the company at no cost.
But the likelihood is that the company has just made a mistake in completing a new and unfamiliar form.
That's nonsense - he's now got more than he had before!!
Are these shares worth anything or is he chuffed to be rid of them ?