Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

how to exit as a director?

  • 26-09-2011 4:06pm
    #1
    needit27
    Closed Accounts Posts: 2 ✭


    Hi,

    I am a company director and shareholder, the company is young and growing but financially has been a drag on my personal finances. I need to consider my options, I have invested a lot of sweat equity and cash in the business already.

    I think I need to go and get a higher paying job, can I reseign as an employee (I am a full time employee) but remain as a director and/or shareholder in the business. I own a decent % along with a few others who are a mix of both executive and non-executive directors.

    We do have a shareholders agreement which covers sale/transfer of shares and I do have an employment contract which stipulates a long notice period, the renumeration within that contract has not materialised, so wondering if that's a breach also? Part of the shareholders agreement mentioned the executive directors needed to be working full time in the business.

    I'd love to stay but may be forced to earn income from elsewhere, any pointers would be greatly appreciated.

    Bit stressed about it!

    Thanks


Comments

  • #2
    kiercoll
    Registered Users, Registered Users 2 Posts: 15 ✭kiercoll


    I am in a similar situation and have resigned but kept my % in the company. The reason I could keep my % is because my shares had vested.

    I think a lot depends on your contract so I would suggest that, if in doubt, you get a solicitor to look over that.

    I don't see a problem in theory with you maintaining a directorship however that probably depends on your fellow directors.


  • #3
    needit27
    Closed Accounts Posts: 2 ✭needit27


    thanks for that, yeah shares are oridinary shares that I have had since formation of the business, not share options so vesting not an issue.


  • #4
    Hogzy
    Registered Users, Registered Users 2 Posts: 7,544 ✭✭✭Hogzy


    If your contract stated that you were to receive X remuneration, and you didnt receive that remuneration then surely the company is in breach of contract.

    Unless the remuneration was to be paid when the company reached certain targets then i couldnt see there being a problem in resigning if you give a reasonable period of notice.


Advertisement