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Hi Im a Direcotr and shareholder of a small business. Intially…

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Hi Im a Direcotr and...

Hi Im a Direcotr and shareholder of a small business. Intially set up as a hobby business some 7 years ago. There are 5 Director/Shareholders (equal shares).

I want to sell out my share in the buiness and have voiced my intent, the other directors have states they will vote me out as a Director and ensure there is no divendeds at the end of each year making my share "worthless:

WHat are my options

Submitted: 13 years ago.Category: Australia Law

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12/20/2009

Solicitor: Leon, Solicitor replied 13 years ago

Leon, Solicitor

Category: Australia Law

Satisfied Customers: 52,730

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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the duty of directors is to look after the company and the interests of the shareholders.

Doing what they are doing is contrary to their duty.

I would value the shares and if they do undertake to do what they say they are make sure you have details and sue them personally for the loss and report them to ASIC

I hope this is of assistance and if so please click on the accept button

Customer reply replied 13 years ago

my applogies new to this system and I should have mentioned /asked a few more things in orginal email.

We are a small business with national clients we have a turn over of around $400K pa, we employ a part time admin officer and have over 100 casual staff.

Shareholders and directors have never recived payments, we have agreed up till now to return all profits back to company to alloww for growth.

5 months ago we took on another director, so are shares were diluted form 25% to 20% each,, this new director as yet has not paid monies into the company for his shares. If and whn he does who should the moneis got to - the company or each oft eh 4 original directors.

I entered the company as a expert in the area of our business, but not a business man as such. It has taken over my life with no reward for the last 7 years. Im eager to sell out. How to I work out how much my share is worth? can the other directors control who I sell my share too?

many thanks

Solicitor: Leon, Solicitor replied 13 years ago

How did you work out what the value of the shares to the new director wee worth?

Customer reply replied 13 years ago

because the new director was a specialist doctor and we needed hs skills no offical amount was decided apon, be he suggested he would contribute $20K to come on board (he still has not). These are reason of why Im looking at "jumping ship"

Solicitor: Leon, Solicitor replied 13 years ago

the company needs to be valued

the accountant will be able to assist here.

Once you know the value of the company then you simply divide the the value by the total number of shares and that will give you the value of each share.

You then have to offer your shares for sale to the others.

I hope this is of assistance and if so please click on the accept button

Leon, Solicitor

Category: Australia Law

Satisfied Customers: 52,730

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

Verified

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