Home – New Forums Money matters Forcing a Director out of a PTY LTD company Reply To: Forcing a Director out of a PTY LTD company

#1023191
akagrp
Member
  • Total posts: 315
Up
0
::

Hi

Please note that the below information is general and you should double check the facts and details for your given situation.

As a general Rule as you do not have a formal shareholders agreement (this was a mistake one is always required), it would depend on the Company’s Constitution that was signed when the company was set up.

Normally most Constitutions from acquired via a normal Off the Shelf setup allow for shareholders to elect directors, if yours allows for majority rule then as you hold 70% of the shares you can elect not to offer them Directorship.

It is also important to make sure the company was not setup in a way to require two directors at all time, or such a vote cannot past without full consensuses meaning 100% in favor.

Though really your biggest issue will be the fact that they are shareholders, as given you do not wish them to be a Director would indicate there may be an issue in the relationship.

Hope it works out how you want it.