Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Minority shares in private LTD company. How safe?

Re: Minority shares in private LTD company. How safe?

Postby atticus » Mon Aug 18, 2014 12:27 pm

Sale of shares to a third party is not a new issue, Jantra.
User avatar
atticus
 
Posts: 19897
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Minority shares in private LTD company. How safe?

Postby jantra » Mon Aug 18, 2014 3:44 pm

atticus wrote:Sale of shares to a third party is not a new issue, Jantra.


new issue or sale of existing, the point still stands, how does the majority interest become diluted?
jantra
 
Posts: 447
Joined: Sun Nov 25, 2012 10:59 am

Re: Minority shares in private LTD company. How safe?

Postby JeffMurdock » Mon Aug 18, 2014 3:46 pm

Thanks David & Atticus.

Sorry, some of this must seem odd (or at least vague) - I've been involved in the company so long it's ingrained in my mind and I probably neglect to explain the scenario fully to those with no exposure to it.

If the MD sells the firm it will be to a large enterprise - someone along the lines of Nokia for example. If he sells up, he would almost certainly want (or at very least recommend) the other shareholders to sell up too. If they decline, I would expect him to force the issue so that it can't jeopardise the sale.

Bearing in mind that even my minority shareholding could potentially be worth a figure around £0.5M - £1M I'd expect the other shareholders (larger than my own) to be happy to take the money and run. I don't think they would be of the mind-set to try to negotiate a better deal at a later date by hanging on to their shares (I know these people!).

I will read the AoA and other docs thoroughly this evening and seek a solicitor's advice if necessary. (Are you guys in a position to recommend anyone?)


Thanks, JM
JeffMurdock
 
Posts: 12
Joined: Fri Aug 15, 2014 5:20 pm

Re: Minority shares in private LTD company. How safe?

Postby atticus » Mon Aug 18, 2014 4:07 pm

Where are you located?
User avatar
atticus
 
Posts: 19897
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Minority shares in private LTD company. How safe?

Postby JeffMurdock » Mon Aug 18, 2014 4:37 pm

I'm in the Crawley (West Sussex) area...
JeffMurdock
 
Posts: 12
Joined: Fri Aug 15, 2014 5:20 pm

Re: Minority shares in private LTD company. How safe?

Postby atticus » Mon Aug 18, 2014 5:02 pm

Thomas Eggar

Stevens Drake

Rawlison Butler

Paul Davidson Taylor

ASB

All decent corporate law firms in your area. I have no connection.
User avatar
atticus
 
Posts: 19897
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Minority shares in private LTD company. How safe?

Postby JeffMurdock » Mon Aug 18, 2014 8:15 pm

Thanks very much everyone! I greatly appreciate your input.

JM
JeffMurdock
 
Posts: 12
Joined: Fri Aug 15, 2014 5:20 pm

Re: Minority shares in private LTD company. How safe?

Postby dls » Tue Aug 19, 2014 4:45 am

For that sort of value and player, yo must expect that everyone will assume that you do know the characteristics of what you own. You may need to respond quickly and with sure feet. If you sense that things are moving it may be well worth getting an advice/action arrangement in place in advance.

If you know that others are in your situation as to class of shares and holding size, it _may_ be that you have co-inciding interests and if so should consider jointly instructing solicitors.
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 12273
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire

Re: Minority shares in private LTD company. How safe?

Postby JeffMurdock » Wed Sep 03, 2014 5:36 pm

Hi everyone.

I have just received a solicitor's letter telling me I'm in breach of the shareholder agreement and informing me that I am required to offer my shares back to the "next level up" (i.e. the MD).

In effect it would cost me too much to argue, as I'd definitely have to engage a solicitor and the MD knows I don't have the financial clout do fight it out that way.

Can I string them along for as long as possible and still remain within the law? (They have said I must respond within 1 week.) Am I obliged to comply? Can I be held liable for their solicitor's costs in any way if I don't

I knew they'd try this...
JeffMurdock
 
Posts: 12
Joined: Fri Aug 15, 2014 5:20 pm

Re: Minority shares in private LTD company. How safe?

Postby dls » Wed Sep 03, 2014 5:49 pm

We cannot possibly say.
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 12273
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire

PreviousNext

Return to Company Law

Who is online

Users browsing this forum: No registered users and 1 guest