Reply to: Worker or employee rights ?!

[wattaj]

That’s right , the company I am contracted to I have shares in , my company is separate so two entities

Hope that makes sense!

It does. Now, what class of share do you own in the client company?

Are they the same as those of the other shareholders?

If they are then I see no reason why you would lose your shares unless you have entered into some form of weird relationship with the client company whereby your share ownership is tied to your engagement with them... but that would tend to imply some from of employee-type ownership; and you are not an employee.

I'll assume that you are a minority shareholder for the time being.

[northernladuk]

That’s right , the company I am contracted to I have shares in , my company is separate so two entities

Hope that makes sense!

That does but why do you think you will lose the shares if you stop contracting for them?

[Purple41]

That’s right , the company I am contracted to I have shares in , my company is separate so two entities

Hope that makes sense!

[TheCyclingProgrammer]

I would have thought a legal specialist would be a first stop. It doesn't sound like the ownership of anything is properly understood let alone the accounting side? Or do you think this is worth doing in parallel?

Both - there are accounting and tax implications of owning shares or even share options from a client who is contracted via your Ltd company if those shares/options are effectively a form of remuneration for services. The implications will be slightly different depending on who owns the shares or options but there are issues in both cases.

[wattaj]

I own the shares not my company .

I absolutely will not sell my company too them they bullied me into getting on board with them last time and I LOVE my own business they will make a lot of threats and try and buy it for peanuts !!

A company is merely a vehicle; I'll assume that you "love" the kind of business that you do. That's different.

Ok, so, is there one business in which you own shares, but to which you are contracted, and another business through which you provide your contracted services (i.e. are there TWO entities in play here)?

[northernladuk]

Shares or share options? Who owns the shares - you or your company? Did you own the shares already? Were they a form of remuneration and if so has this been accounted for in your company accounts? It all sounds very messy, I would speak to an accountant.

I would have thought a legal specialist would be a first stop. It doesn't sound like the ownership of anything is properly understood let alone the accounting side? Or do you think this is worth doing in parallel?

[Purple41]

I own the shares not my company .

I absolutely will not sell my company too them they bullied me into getting on board with them last time and I LOVE my own business they will make a lot of threats and try and buy it for peanuts !!

[wattaj]

Get them to buy your company, put your feet up for 2 years with the baby

Then open new company and pick up

^^ There may be some mileage in this.

It may be worthwhile asking if they'd like to buy you out and take over your shares and your business. It *might* be a tidy way to clear the desks so that you can have some time off to focus on other things.

[GhostofTarbera]

Yes I will take legal advice.

I think my shares will definitely be questionable because my own limited company is conflict of interest with their company and I think they will look to set up in my area at some point soon. In fact they have told me they are looking.

It’s messy I know !!

Get them to buy your company, put your feet up for 2 years with the baby

Then open new company and pick up


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[TheCyclingProgrammer]

Shares or share options? Who owns the shares - you or your company? Did you own the shares already? Were they a form of remuneration and if so has this been accounted for in your company accounts? It all sounds very messy, I would speak to an accountant.

[Purple41]

Yes I will take legal advice.

I think my shares will definitely be questionable because my own limited company is conflict of interest with their company and I think they will look to set up in my area at some point soon. In fact they have told me they are looking.

It’s messy I know !!

[northernladuk]

Thanks for all your replies !!

It’s quite a long story but I have had limited company myself for 10 years and basically I approached some investors with a business plan I suppose Dragon Den style. I was young and niave and ended up with a tiny share and a contract that said that said I could work for them self employed which I’ve done for 3.5 years . They wanted to buy my original company off me but I refused so I still have that and I’m pleased I do.

Silly I know ! If I lose my contract with them I also lose my sweet shares !

I’ve just felt really trapped by the whole thing and before anyone says it again I know I should have taken legal advice at the time but it was a case of me having wide eyed excitement and no money for a lawyer!

What a mess. So the next step is to get proper legal advice in to what your current situation is. It's not clear what you really are and what your legal situation is in all of this. For example, I can't see why you would lose your shares if you lose your contract though. Work and shares are not linked. I have shares in loads of companies I don't work for. Or have you signed something we don't have sight of?

So much doesn't make sense here so you really need to go get proper advice to fully understand EXACTLY where you are right now. Then you might be able to progress your original question. It's not going to be cheap though.

[Purple41]

Thanks for all your replies !!

It’s quite a long story but I have had limited company myself for 10 years and basically I approached some investors with a business plan I suppose Dragon Den style. I was young and niave and ended up with a tiny share and a contract that said that said I could work for them self employed which I’ve done for 3.5 years . They wanted to buy my original company off me but I refused so I still have that and I’m pleased I do.

Silly I know ! If I lose my contract with them I also lose my sweet shares !

I’ve just felt really trapped by the whole thing and before anyone says it again I know I should have taken legal advice at the time but it was a case of me having wide eyed excitement and no money for a lawyer!

[northernladuk]

So it's with the OP to clarify the facts of the engagement and answer some the questions posed before we can continue I suppose.

[fullyautomatix]

Congratulations on baby!
Quite understandably you are worried about your work and income at this stage. Were you expecting the company to deal with this situation like a normal employee, as in, take a few months off with maternity pay, then come back after a few months and resume working ?
If this company really values your contribution and wants to retain your services, they might give you a few months off, but with no pay, you will have to manage on your own. Does your Ltd company have funds to support you through all this ?
However, the bigger issue is, your work involves traveling ? This might be impossible for a few years at least, so your current role might as well be a non starter for you. It might be a good idea to start looking for a permie role that is closer to home and has zero travel.

Best of luck!