Taken off list of directors

lostsoul01

Separated from my husband two and a half years getting everything ready for a legal separation. I made a discovery that he has taken my name off the list of directors for the company that he owns and I worked in during our marriage. I'm just wondering should I not have signed something likea letter of resignation? Isn't something like this given that to the directors board ? I feel he is trying to remove me from any entitlements over the company. We have sold the family home and equity has been split 50-50. We have two children and he does pay a little maintenance for them as I work full time. I feel I need to question whether I should look for something further from the business or am I entitled to anything? Thanks

phildin

Normally yes, you would have to sign something to indicate that you were resigning. I'm just speculating here but there could be a provision either in the articles or company law generally that allows for the forcible removal of a director via extraordinary general meeting (EGM) of the remaining directors. If you want to find out exactly what paper work was filed then you can contact the company registrations office. You can either retrieve the documentation online yourself or else phone them up and they should be able to direct you.

Losing the directorship is not necessarily a bad thing though, a directorship is not a shareholding and if anything, can be more a liability. Specifically, by virtue of being a director, you are responsible for what goes on in the company; if you ex husband behaves badly, you're potentially on the hook for it.

There's an awful lot of detail missing but I'm going to speculate on two scenarios that might prove useful:

1. Your husband is just being prudent and separating business concerns from personal concerns. The fact that it was done without your knowledge would raise my suspicion on this though he may have just not wanted the hassle of dealing with it the regular way.

2. Removing you as a director is part of a larger process intended to deprive you of something that you would otherwise be entitled to. In this case, you would have to be entitled to something. Is it your understanding that you still own part of the company? Has ownership of the company been discussed as part of your separation plans?

If the company is just a vehicle for your husband to carry out his trade then it likely has no real value so even if you own shares in it personally, they probably won't be worth fighting over. On the other hand, if the company has assets or if it has the potential to become the next Google then any shares you own could be worth fighting for. In the latter case, removing you as a director could be part of an attempt to reduce the value of your share holding (if you have one).

I suggest that the most important step is to make sure that control and ownership of the company should be discussed between you. It's probably worth talking to a solicitor before you have this discussion and it's definitely worth getting a solicitor to review any proposed agreement.

lostsoul01

Thank you so much for your reply. He bought 40% of the company whilst we were married so he is in a partnership. I was then listed as a director and worked there for eight years. I didn't have any other involvement in the company. My ex and his business partner took out loans and we had discussed him taking ownership of these loans if I was to relinquish my rights to the company. This was being put in the separation agreement. When we were looking at maintenance again this year he asked to reduce it by 50% as he had to cover of these loans and this is where I feel I am being unfairly treated. He is in the middle of rebranding the company and I think he is buying out his partner or getting somebody else in but I'm not 100% sure. I did go on to the company registration office website and that is where I discovered I had been removed and two new people had been added. I'm am otherwise quite in the dark so as you said maybe the best thing is to go to a solicitor.

Taltos

Mod note
Hi OP, sorry but we have to close this thread.
You already have one thread open here please don't start any more.
However, the direction of this thread is beyond our remit and could result in you receiving incorrect advice that would impact you financially. The best and only advice anyone is permitted to give you here is to seek the advice of a legal professional with business background.

I don't mean to dismiss the advice already offered but due to the nature of the question here we have no choice but to call a halt.