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Breach of fiduciary duty - Company Directors

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  • Breach of fiduciary duty - Company Directors

    I have a situation unfolding which I would greatly value opinions (and indeed any other help) on. My business partner and I hold a controlling stake (75%) in a company (Company A) that I set up 12 months ago. These shares are held through a holding company (Company B) which my partner and I jointly own. The remaining 25% of the shares in Company A are held by Company C who is also the biggest customer of Company A. (Sorry if that's confusing). A crisis has occurred in the company and the minority shareholder (Company C) has threatened to withdraw it's business without which Company A is pretty much worthless. I strongly suspect (and have some evidence - but not enough) that there may have been collusion to create the crisis and that my partner and Company C are actually working together to remove me from the company (it was this eventuality that caused me to set up the holding company arrangement in the first place). Of course, as the major customer. Company C holds the power. I have no choice but to wind both Company A - and the holding company up. At which point, Company C would, of course, be at liberty to contract direct with my partner (presumably at even lower rates). Having spent many years in large corporations I'm not entirely unfamiliar with how this works - and, frankly, I'm old enough to have known better in the first place. I just hate to see these sort of unethical practices flourish.
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  • #2
    Re: Breach of fiduciary duty - Company Directors

    Hi Chandler,

    Is there any hint of fraud or fraudulent conduct of any description? Fiduciary Duty cases are, in my experience, normally dealt with by the Office of the Official Receiver and Insolvency Service, or the Investigation Division of the Department of Business, Innovation & Skills (BIS).
    Life is a journey on which we all travel, sometimes together, but never alone.

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