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LTD company - strike off

MMMMMM Just JoinedRegistered Posts: 1
in General accounting discussion
Hi

Has anyone come accross a situation when during a divorce between the director and the secretary of the company, the director proposes strike off and dissolution of the company. What are the consiquencies for the secretary and would it be in her/his benefit to object the proposal.

Many thanks.

Comments

  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    I have never come across this situation in practice but I would suggest the company secretary has no say in the decision whatsoever.

    They also have no grounds to object unless they are also either a director, shareholder or creditor of the company.

    I suspect the director (assuming he also owns the company) does not want his ex-wife taking half a stake in the business as part of the divorce. That, I suggest, would be a matter for the solicitors to deal with.
  • PaulPSBPaulPSB Feels At Home Registered Posts: 55
    Dean's right - just remember that "creditors" can include employees. Has the Company Secretary been on the payroll??
  • MartinAlexMartinAlex Just Joined Registered Posts: 3
    Hello,

    Going back to my business law classes.....(if i can remember correctly)

    It may depend on the status of the Secetary. If she has a shareholding she will automatically have certain rights under the memorandum of association of the company. However for a private limited company, there only needs to be one shareholder so the secetary will not always be a shareholder.

    If for instance, it is deemed that the wife is an equal in the company, and the running of the company is being compromised by how it is owned, then any shareholder can partition the courts to have the company wound up, even without the concent of the other party.

    If the sectary is empoyed by the company with a contract of employment, they will have the usual employment rights. As Per Pauls Comment!

    Martin
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