Director issues, please help.

[budget888]

Hi all,
Posting on behalf of a friend.
He was taken over by a company and made a director. The company have installed a hazardous chemical painting plant and he considers (and has sufficient proof) that the plant is unsafe due to insufficient extraction. Has asked for and been refused extraction.
He's informed them that if the extraction isn't installed soon he will not go into work.
They have recognized the possible need for extraction but have made no promises to install, however, they have offered alternative work at other premises but the extra drive is an additional 50 miles per day.
He feels he is being forced out.
What should he do? What rights does he have as a director? What about the other staff who will remain there working in the unsafe environment? Can he request/demand an independent company to verify the extraction needed?
thanks,
Jamal.

[Alfa1steve]

Re: Director issues, please help.

Hi budget888

A few areas must be clarified first.

You say your friend s company was taken over.
1) was he the director of his ltd company before it was taken over?
2) What percentage of the shares in his ltd company did he own before it was taken over?
3) If he had shares where they converted into the new company ?
4) Was the deal cash and shares or just cash (a buy out)

Your friend does have rights as a director and the company also has responsibilities to him also, as far as having the power to do anything a lot rests on his share holding %

I have subscribed to the thread so just post back with answers to my questions and we will go from there.

[des8]

Re: Director issues, please help.

If I was your friend I would be more concerned with my duties under the Provision and Use of Work Equipment Regulations 1998, than what rights I had as a director!
http://www.hse.gov.uk/work-equipment...nery/puwer.htm
Perhaps he should contact the HSE : http://www.hse.gov.uk/contact/

[reecespieces]

Re: Director issues, please help.

Listen to des8...your friend really should be concerned about his duties in regards to PUWER

[budget888]

Re: Director issues, please help.

Listen to des8...your friend really should be concerned about his duties in regards to PUWER

Hi, Thank you.
I'll certainly advise him to contact HSE re Puwer to advise them of the situation and put on record that the ongoing health concern for existing employees are outside of his control, he feels powerless as he's not being involved in any meetings even though he is supposed to be a director.
re the questions:


- He was a sole trader, before being taken over.
- 100% owned by him.
- His company including his own machinery, customers & equipment was converted to some shares and a pension (the pension seems to be dependent on the future perfomance of the limited company though, so may be difficult to obtain).
- Cash and shares
He holds approx 20% of shares in the takeover company, however, as the parent company own several ltd companies could they just bleed this company and sacrifice it for the others, thus negating the pension/share situation?
He has 2 problems, firstly, the ongoing safety concern, and secondly, his stake is vulnerable.

Any ideas?
Thanks, really appreciate it.

[reecespieces]

Re: Director issues, please help.

I would advise him to seek out a legal consultant that specializes in H&S and PUWER, who can then advise him what to do next...