Colos Short and Curlies Posted April 1, 2009 Share Posted April 1, 2009 I'm sure someone will know the answer to this... At what level of shareownership does it become compulsory for all other shareholders to sell their holdings? The Company I work for is looking to take ownership of a company with 5 shareholders, 4 of which would be willing sellers with no haggling (The total share capital is worth £100 and they would sell for nominal value). The final share owner is the ex Financial Controller of the company doing the buying who was made redundant in December and is taking the firm to tribuanl. Obviously this makes things a bit tricky. I'm hoping that if we buy 90% of the shares we could force her to sell at a nominal value. Any thoughts? Link to post Share on other sites More sharing options...
relámpago blanco Posted April 2, 2009 Share Posted April 2, 2009 I'm sure someone will know the answer to this... At what level of shareownership does it become compulsory for all other shareholders to sell their holdings? The Company I work for is looking to take ownership of a company with 5 shareholders, 4 of which would be willing sellers with no haggling (The total share capital is worth £100 and they would sell for nominal value). The final share owner is the ex Financial Controller of the company doing the buying who was made redundant in December and is taking the firm to tribuanl. Obviously this makes things a bit tricky. I'm hoping that if we buy 90% of the shares we could force her to sell at a nominal value. Any thoughts? I think its 90% Link to post Share on other sites More sharing options...
Cajun Posted April 2, 2009 Share Posted April 2, 2009 Aye 90% sounds about right. Link to post Share on other sites More sharing options...
indi Posted April 2, 2009 Share Posted April 2, 2009 Depends what kind of company it is, I think. I don't mean what it does, I mean Ltd, PLC, etc. Link to post Share on other sites More sharing options...
Colos Short and Curlies Posted April 3, 2009 Share Posted April 3, 2009 Depends what kind of company it is, I think. I don't mean what it does, I mean Ltd, PLC, etc. Ltd Link to post Share on other sites More sharing options...
ToonTastic Posted April 3, 2009 Share Posted April 3, 2009 Pursuant to Chapter 22, Section 1 of the Companies Act (2005:551), a shareholder that directly or indirectly owns more than 90% of the shares in a limited company may compulsorily buy out the shares of other shareholders in the company. This compulsory buy-out right may also be exercised by a minority shareholder. The rules are mandatory and it is not possible to include in the articles of association a provision excluding the buy-out right or stating that the right shall be triggered by conditions different from those stated in the Companies Act.(1) The same rules apply to both public and private companies. Although shareholders are unable to include in the articles of association compulsory buy-out rules which deviate from those set forth in the act and to register such rules at the Companies Registration Office, there is nothing to prevent shareholders from contractually agreeing to refrain from exercising the compulsory buy-out provisions. Therefore, if shareholders mutually contract away compulsory buy-out rights and obligations, it raises the question of the legal signifiance of such provisions in the event that a shareholder demands compulsory buy-out under the Companies Act. So Yep Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now