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Alex J.
Alex J., Litigator
Category: UK Employment Law
Satisfied Customers: 3653
Experience:  LLB, LPC, DELF
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I am director of small uk company

Customer Question

I am director of small uk company
Submitted: 1 year ago.
Category: UK Employment Law
Customer: replied 1 year ago.
One of my co-directors has been deliberately abusing the company credit card.
What should we do? We must have re-imbursement as a minimum
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Alex J. replied 1 year ago.

Hi Thank you for your question and welcome my name is ***** ***** I will assist you. Is this individual a shareholder of the company? Have you removed them as a director? How much do they owe? Kind regards AJ

Customer: replied 1 year ago.
he is a shareholder. Can I remove him as a director for this? and shareholder?Approx £3,000
Expert:  Alex J. replied 1 year ago.

Hi Thank you. What percentage of the shares does he own? Does he have the money to repay this debt? Kind regards AJ

Customer: replied 1 year ago.
Share split is 43.75 to me 43.75 to director abusing 12.5 to 3rd director.He probably does not have the money now. We could deduct from next salary payment.thanks Simon
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. You and the third director have sufficient voting rights to remove him as a director. You only need a 51% majority (ordinary resolution) to remove a director. If he has taken money from the company he will be in breach of S.172-177 of the Companies Act 2006 generally - for failing to act in the best interests of the company, acting in conflict etc - Under S.260 of the Companies Act 2006, you can bring an action on behalf of the company against him to recover the money as he is in breach of his director duties. If he does not have the money, you would be best served trying to agree a repayment plan with him. Can you work with him going forward? Kind regards AJ