What are my rights as a shareholder and director of a family run business (there are 5 members of which my percentage shareholdeing is 25%)?
What according to the law is the percentage which will constitute a minority shareholder, without rights to access company information?
Can a shareholder give a proxy to another shareholder? is there a time frame as to when a proxy must be forwarded, prior to any meeting?
Can any information be withheld from a shareholder who is a director?
Searching the internet, and asking advice from my auditor.
As a director of a company you are entitled at all reasonable times to inspect and have access to all the information relative to the company - including financials etc.
The relationship between shareholders is normally governed by a shareholder's agreement entered into between them and this should govern proxies, meetings and access by shareholders to company information. You should check this to determine the answer to your questions about timing and proxies etc.
As a 25% shareholder you may not have the major portion of the shares but you hold a significant amount and should, depending on the shareholder's agreement, be able to access information but this will not be necessary should you be a director.
In terms of the Companies Act you can also apply to wind up the company on a just and equitable basis if you need to get out of the company no one is prepared to buy your shares at a fair price.
Bachelor of Social Science, LLB. Admitted in England and Wales, practiced for 11 years including UK
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