Shareholder Rights

[Jessie123401]

Hi,

I am a shareholder in a small business (shares, not options). I have 25% of the business in shares. I have two business partners who own the rest of the shares, split between them. In the last seven years I have never seen the management accounts, P&L, balance sheet, expenses put through the company. I am wondering what am I entitled to ask to see with a 25% shareholding? The business has never been audited to date, on companies house its has 'unaudited accounts'. I want to ask to see what I am entitled to as a shareholder and would welcome any advice.

[des8]

an informative website for you https://www.shareholderrights.co.uk/...eholder-rights

[atticus]

I assume that you don't have a shareholders agreement.

s476 Companies Act 2006 gives the holders of shares amounting to 10% or more in value to require an audit. But note the conditions for exercising this pwer:
476 Right of members to require audit

(1)The members of a company that would otherwise be entitled to exemption from audit under any of the provisions mentioned in section 475(1)(a) may by notice under this section require it to obtain an audit of its accounts for a financial year.

(2)The notice must be given by—

(a)members representing not less in total than 10% in nominal value of the company's issued share capital, or any class of it, or

(b)if the company does not have a share capital, not less than 10% in number of the members of the company.

(3)The notice may not be given before the financial year to which it relates and must be given not later than one month before the end of that year.

[atticus]

A further thought. Are your shares the same class as the shares held by the 2 others?

If yes, are you receiving dividends?

If no, look at the company's Articles of Association, which you can download from Companies House. They should state the rights and powers that are attached to shares of your class.