Sacking a managing director.

Kersh

Ok,
Im looking for someone with some knowledge on this subject. A company has 3 directors. One has to be sacked (cos he is not pulling his weight + takes 3/4 days off in a row). They are all shareholders 33/33/33. Can he legally be ousted without shutting the company down. Any ideas?

Sleepy

I think you can force a buyout given that the other two of you hold the majority share (and therefore control) of the company. You can certainly sack him, although you may not be able to force him to sell his share of the company.

stevenmu

Yeah, I think the directors are able to vote him out, I'm pretty sure they can't force him to give up his shares though and he'll still have a vote, it just means the other two can always tema up and outvote him though

Nuttzz

they can vote him out when he offers himself for re-election at an AGM, you can call an EGM and vote him out that way, but he can still hold onto his shares. The other shareholders can make him an offer for them but he doesnt have to accept.

"In the case of an EGM, only seven days notice is generally required, although 21 days is usually required in order to pass a special resolution, unless 90% of the members of the company agree to shorter notice"

see www.odce.ie for more

impr0v

I read the topic wrong and thought it said 'smacking' a managing director. Well if three year olds can get it....