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Hi there, I'm posting this on someone else's behalf who doesn't yet have an account. I'll call them "J".
J is one of 2 Directors of a UK SME. The other Director holds 100% of the company's shares, and has threatened to remove J as a Director, specifically because J wishes to uphold his fiduciary duties, whilst the other Director is willing to take a risk of breaching theirs.
Without going into too much detail; J is legally trained, and has provided advice to the Director/Owner that they should not pursue legal action against a former employee, because doing so would cost far more than what the company would stand to gain if it were successful in its claim. The company's legal representatives have also confirmed this. The Director/Owner is self-admittedly "out for blood" and doesn't care about the money aspect.
J is concerned that by proceeding, and leading on this action on behalf of the company, he'd be breaching his fiduciary duty to promote the success of the company for the benefit of its members as a whole, as it would be a vast financial detriment (we're talking about a £6,000 gain against around £60,000 in estimated legal costs. J has also explained to the Owner/Director that he has a fiduciary duty to exercise independent judgement. J is concerned that by breaching these fiduciary duties, he could be partially personally liable for legal costs and lose his home.
The Owner/Director was FURIOUS that J attempted to uphold his legal rights, and has requested that J steps down as a Director, such that there "is no breach of fiduciary duty" and he continues to lead the legal against the ex-employee, work purely as an employee himself.
J wishes to know what protections/rights and recourse he has. He has less than 2 years length of service, and from an employment point of view has a solid case for direct disability discrimination and automatic unfair dismissal.
Many thanks!
J is one of 2 Directors of a UK SME. The other Director holds 100% of the company's shares, and has threatened to remove J as a Director, specifically because J wishes to uphold his fiduciary duties, whilst the other Director is willing to take a risk of breaching theirs.
Without going into too much detail; J is legally trained, and has provided advice to the Director/Owner that they should not pursue legal action against a former employee, because doing so would cost far more than what the company would stand to gain if it were successful in its claim. The company's legal representatives have also confirmed this. The Director/Owner is self-admittedly "out for blood" and doesn't care about the money aspect.
J is concerned that by proceeding, and leading on this action on behalf of the company, he'd be breaching his fiduciary duty to promote the success of the company for the benefit of its members as a whole, as it would be a vast financial detriment (we're talking about a £6,000 gain against around £60,000 in estimated legal costs. J has also explained to the Owner/Director that he has a fiduciary duty to exercise independent judgement. J is concerned that by breaching these fiduciary duties, he could be partially personally liable for legal costs and lose his home.
The Owner/Director was FURIOUS that J attempted to uphold his legal rights, and has requested that J steps down as a Director, such that there "is no breach of fiduciary duty" and he continues to lead the legal against the ex-employee, work purely as an employee himself.
J wishes to know what protections/rights and recourse he has. He has less than 2 years length of service, and from an employment point of view has a solid case for direct disability discrimination and automatic unfair dismissal.
Many thanks!
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