What are my rights

[FJM]

Myself and two others put money in to business 4 years ago with a mutual friend who has looked after the day to day running since then. He said that he would look after all the legal side (accountant by profession) in terms of seting up the company etc.

It is fair to say that the three of us have kept a 'hands off' approach during the period after the start up.

I have recently looked at the company on Companies House and found that there is only one director listed i.e. the friend who has been running the company (and his daughter as Company Secretary) and the £3K that each of us put in, listed as £12K directors' loans.

Where do we stand in this

[innagle]

Originally Posted by FJM

Myself and two others put money in to business 4 years ago with a mutual friend who has looked after the day to day running since then. He said that he would look after all the legal side (accountant by profession) in terms of seting up the company etc.

It is fair to say that the three of us have kept a 'hands off' approach during the period after the start up.

I have recently looked at the company on Companies House and found that there is only one director listed i.e. the friend who has been running the company (and his daughter as Company Secretary) and the £3K that each of us put in, listed as £12K directors' loans.

Where do we stand in this

I am not lawyer, but I'd imagine it depends on the company type (http://en.wikipedia.org/wiki/Categor...s_of_companies) and which written agreements the four of you have, as it may come out to question of who is legally the owner...

[primeaccounts]

Unfortunately it does not look very good for you! Was any shareholders agreement drawn up when the business was set up? Do you have a share certificate for the shares that you think that you own? Would be a good idea to download the annual return from Companies House to see who the shareholders are. If he is the only shareholder and director etc and no agreement was drawn up re your original investment then I dont think you have much chance in getting anything back from a legal perspective. Are you still on good terms with him?