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Join Date: Dec 2008
Location: Sydney NSW on the south side
Thanked 11 Times in 11 Posts
| | Re: Forcing a Director out of a PTY LTD company
Again it would depend on the terms of any governing document that controls the company rules. It may not be called a constitution. Essentially this is what decides the way in which the company will be run, remembering of course that it still needs to be within the general rules allowed by any company structure (the ones the government sets).
As I understand it you have 2 things at work in any company, the positions and responsibilities of any directors, company officer and secretary etc. and the rights and responsibilities of shareholders. If you have the majority vote as a director then it appears you also have the majority vote as a shareholder.
The only problem I see is that the minority shareholder owns a shareholding in the company and could strictly speaking sell that to anyone. Your best tactic might be to approach that person with an offer to buy them out. Of course you can tactfully mention that it might be the best option for everyone to settle amicably now, sort of cut your losses before things got any worse - which in my experience is very likely to be more the case than never having this problem ever surface again.
I would suggest you consider that it may be better to swallow hard and be prepared to accept less than you really want if it means stopping the problem getting worse and dragging on much longer.
Also, as has been well said above, only my understanding and you need to be sure of how you should act so it might be a good thing to have a chat to a legal type who can make your options clearer.