SHAREHOLDER ADVICE PLEASE FOR A SMALL LTD COMPANY (I am frozen out of)

[atticus]

You have messaged me the name of the company. I have therefore been able to look at the Companies House file. This tells me:

1. You are registered as holder of 2 shares, the other 2 individuals hold 8 shares (4 each).

2. BUT you have B class shares, whereas the other 2 hold A shares.

This means that the directors can declare a dividend on the A shares only and not the B shares. This is perfectly lawful, and is one of the reasons that directors of small private companies issue shares in different classes.

I am sorry to say that your rights are extremely limited, and your shares probably have negligible value. I repeat my questions: What were you told when you were given the shares? Did you sign anything at that time?

[HR BLAH BLAH]

Hello atticus thankyou so much for looking into this you are a gent. I was simply told we are gifting you 20% shares and that was it no paperwork no nothing. So I have limited rights and low level class b shares. Can the main two shareholders trouser dividends each year and give me nothing ? Do I have a right to see anything as in audited accounts etc ? Can they buy me out ? Should I send them an email demanding info or am I alone in the dark here !!! If they give themselves a dividend legally an I due one also ?

thank you for you advice atticus

[atticus]

Answers to your questions:


Can the main two shareholders trouser dividends each year and give me nothing?

Yes - see my last post.

Do I have a right to see anything as in audited accounts etc ?

See previous replies in posts #9 and #13.

Can they buy me out ?

I have been suggesting that you ask them to make you an offer. It may be that the principal shareholders will be prepared to pay you something in order to clear your name off the shareholders register

Should I send them an email demanding info or am I alone in the dark here !!!

Read all my replies carefully and think about how you will go about this.

If they give themselves a dividend legally an I due one also ?

See what I have previously said about A and B shares (post #16).