Fraud and business crime question:
The company I am involved in is split 3 ways 62.5%, 25% & 12.5%, all shareholders are directors. When the company was set up, directors had 1 vote each of equal weight. The major shareholder is the MD. However, myself and the other shareholder are concerned and pretty annoyed that he keeps giving the company secretary payrises, loans and even £2000+ handouts. He has also made her a director without either of us signing anything. Are the payouts legal, or can we do anything about it? We have tackled him several times about the issue, and he promises she will not get anymore, then 6mths later she's in debt again, puts on the waterworks, threatens to leave and when we check the bank she has had another payout. Your advise would be gratefully received.
Responses:
Peter Johnson's response
As I guess your MD is the majority 62.5% shareholder he will always win the vote at any meeting of the shareholders which is where the real power lies. Can any practical steps be take such as getting the bank to accept cheques signed only by two directors not one? The ultimate threat is the claim by you and your other minority shareholder to go to court to claim that your rights are being unfairly prejudiced. The court has wide powers to set things right under the Companies Act.
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