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Company Director Resigning as Employee

Company Director Resigning as Employee

Postby Nunners42 » Tue Sep 13, 2016 1:38 pm

Hi All

Haven't had to use the forum for a long long time, but unfortunately, back again :( And this isn't going to be a straight forward question.

Can an owner/director of a company, who has worked within the company full time for 11 years, resign as an employee, but stay as a director?
They are claiming they have a contract, which allows them to give 6 weeks notice, and that's that!

So simple question, but clearly it's more complicated.

The employee in question is my ex-wife, with whom I'm 50% owner. I have worked elsewhere for the majority of the time we've had the company, but sadly, due to various reasons, the marriage has broken down, and she's now sent me, as the other director, an email. We are the only directors, and without her day-to-day involvement, the company is unlikely to be able to function (all sorts of regulatory and other reasons - and I work full time!).

I have a solicitor acting on my behalf, and have asked her advice/suggestion, but just wondered if anyone had ever heard of this, or had any views on this?!

Thanks
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Re: Company Director Resigning as Employee

Postby atticus » Tue Sep 13, 2016 1:56 pm

The answer is Yes. The two roles are not the same.
This is subject to anything there may be in the Articles of Association or any shareholders agreement.
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Re: Company Director Resigning as Employee

Postby 3.14 » Tue Sep 13, 2016 2:41 pm

Agreed. She can be an employee as a managing director where she manages the company and be a director.
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Re: Company Director Resigning as Employee

Postby atticus » Tue Sep 13, 2016 3:19 pm

Ask her if she would like to buy your shares?
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Re: Company Director Resigning as Employee

Postby Hairyloon » Tue Sep 13, 2016 3:47 pm

The directors would appear to have six weeks to find a replacement employee. I'm told that there are some very good agencies out there...
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Re: Company Director Resigning as Employee

Postby atticus » Tue Sep 13, 2016 5:57 pm

The context suggests that both directors may not see eye to eye on the question of recruiting a replacement. I'm going to guess that the OP's ex has set up her own business doing much the same, and wants this one to close. If that is right, she won't want to pay much for the OP's shares.
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Re: Company Director Resigning as Employee

Postby Nunners42 » Tue Sep 13, 2016 6:41 pm

hi guys

Indeed - there are some good assumptions here, no all correct, but good advice!

Yes, we aren't seeing eye to eye, and no the other director has not setup a competitor, she'd find it very very difficult to do without cash (which she has limited of).

Just going to have to leave it to the solicitors to sort, as it's not straight forward at all... :(

Thanks though
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