RE: Can't Get Secretary To Resign - What are my options ???

[craig1]

A lot of this is why we (me and the wife) went for a LLP with an "eat what you kill" partnership agreement; my earnings are mine, hers are hers, we split the essential company expenses 50/50 and identifiably individual expenses come out of our own individual profits. One set of company admin work rather than two and a very well defined profits/costs agreement making it possible for us to work as if we were stand-off business partners, even in the event of a relationship breakdown.

[rtgibson]

There are minimal assets in the company just some computer equipment thats depreciated to next to nothing - so i have no worries there really. There's about 10k in the bank for this financial year - this was earnt during a period where we have definitely not been together in any way shape or form....I realise she is still entitled to half though. I was contemplating having a good few months off (to get my head straight and my life back on track) - during these few months I'd still pay myself a wage and do some R & D maybe. running the accounts down as far as I could....presumeably "I" could resign at the end of it and just leave the company to her to sort out, is that legal ?.

Then I'd be able to setup again right ?

I know this isn't a divorce forum but our divorce is not finalised yet...if I was to setup another company now wouldn't she be entitled to half of that (i.e same reason I cant buy a house yet etc etc) ?

Thanks

[rtgibson]

Would I be correct in thinking that "if" she decides to go for the jugular and tries to resign now and "demands" half of the bank....am I not in a position where I can reject her resignation or disagree to whatever terms she has. So in effect I can say the only way you are resigning is to leave everything and just go ?

[TheFaQQer]

I know this isn't a divorce forum but our divorce is not finalised yet...if I was to setup another company now wouldn't she be entitled to half of that (i.e same reason I cant buy a house yet etc etc) ?

You'd be best asking your divorce lawyer, to be honest.

There are lots people on here who have divorced in the past, but I wouldn't trust anyone round here for their advice when you must have a "real" expert who can advise on this.

Good luck with it.

[Pondlife]

Would I be correct in thinking that "if" she decides to go for the jugular and tries to resign now and "demands" half of the bank....am I not in a position where I can reject her resignation or disagree to whatever terms she has. So in effect I can say the only way you are resigning is to leave everything and just go ?

You need to separate her as company secretary and her as shareholder in your mind. She can resign as sec but will still be a shareholder.

[Clare@InTouch]

Would I be correct in thinking that "if" she decides to go for the jugular and tries to resign now and "demands" half of the bank....am I not in a position where I can reject her resignation or disagree to whatever terms she has. So in effect I can say the only way you are resigning is to leave everything and just go ?

A shareholder cannot demand half the bank balance, and dividend payouts are decided by the Directors. In theory she can keep hold of the shares and you just refuse to pay any dividends, but then of course you don't get the money yourself either unless it's wages rather than divvies.

You may be better off going brolly for a few months, until it's all sorted out and final, and then just start a new company.

FaQQer is spot on though, talk to a solicitor.

[Scrag Meister]

My mother is the company secretary, no shares. My wife has zero to do with the company.

Once bitten, twice shy.

[rtgibson]

Ohhhh bugger.... I didn't think about the bit where even getting her to resign still leaves her as a shareholder. Thanks for pointing that out. I would still need to get her to let me buy her shares.

[northernladuk]

My mother is the company secretary, no shares. My wife has zero to do with the company.

Once bitten, twice shy.

What Scraggy says everytime for me.

[psychocandy]

That's not the 'usual' setup, it's inflexible and irks HMRC as well as leading to the mess you're in now... make sure to avoid it in future companies (and wives).

As for now, in court couldn't you claim that as she does no work she isn't entitled to 50%? Or can you create 100 more shares and dilute her holding (like in The Social Network)?

Bummer though... sounds messy. A new company sounds best - what funds are in the current company? You can increase your salary as if you were in IR35 so there is no money to pay in dividends maybe?

50/50 irks HRMC - Bollax they dont care

I've got probably 0.001% of Halifax shares but I do zero work for them. Can they take them off because of this or had I better turn up at the branch tomorrow just in case? More Bollax.