Death of owner /managing director

[Gazart]

What happens when the owner and 90% shareholder and managing director of a private limited company dies? There is one other 10% shareholder who is the only remaining director. I am the sole beneficiary - the only daughter - of the recently deceased owner. I will be acting as administrator for the entire estate - am applying for administration at present. What powers does the remaining director have? Can she appoint and sack staff? Can she appoint a new director(the company articles state that there should be a minimum of two directors)? Can she legally withhold information about company accounts and business from me? She has actually done all of these things without any form of communication with me and has instructed staff not to communicate with me either.

[Ian J]

There are a couple of legal bods who look in here from time to time who can give you chapter and verse but what the minority director needs to be reminded of is that directors run the company on behalf of the owners - which in this case is yourself and she should be acting in your best interests which she appears not to be doing at the moment.

There are procedures for removing directors but I'm very rusty and I would suggest that you need to take legal advice sooner rather than later otherwise you may end up with nothing to inherit

[MikeH]

Hi Gazart,

I have offered you some advice to this post on another forum. My advice still stands. From the information that you have supplied here and on other sites you need to get legal advice and act fast. If this company has any value then the few hundred pounds spent on solicitors will be worth it.

Mike.

[Gazart]

Thankyou for the advice so far- Mike- thanks for your input, much appreciated, I am just casting a wide net at the moment- things have been, and still are, very complicated.

[LimeLegal]

It is impossible to give you any form of advice on this without knowing if there are in place directors or shareholders agreements. If there are not and the will left all to you including the shares in the business then you need to act fast in relation to the company and take control. For this you will need legal advice on your specific circumstances. You can access legal advice via us by phoning on 0870 240 4325 on Monday and asking to speak to either Sue or Antonia.