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What do these shares really mean?

8 replies

Washthedishesmaggie · 10/11/2016 13:48

Back in 2005 my boss treated my appallingly. As a "sorry" she gave me 10% of the company.

In 2007, when I had my first child I asked for this in writing as I was writing my will. I didn't really read the articles very well. I was just delighted to have ownership in the company, I've now worked there for 21 years.

I was given ordinary B shares and was restricted to no voting rights for five years.

On Companies house the shareholders are listed, in all returns/accounts, and the shares:
Ordinary A full rights
Ordinary B no votes

In 2013 the company restructured and so my shares were transferred from Maggie May ltd to Super Maggie ltd, Super Maggie had four subsidiaries.
In 2013 (dated 1.1.2013) on the allotment of shares form it reiterates the shares.

Ordinary A lots of blurb, dividends etc
Ordinary B All shares issued after 2.1.2013 get no vote for first five years, other B shares shall rank equally for voting purposes. On a poll each member shall have one vote per share held. Dividend rights. Each share ranks equally for any dividend declared.

So last year my boss paid himself a huge dividend, for me just a 5% portion would be life changing. I got nothing.

Then reading back though the initial article (2007) signed by myself, my boss, another employee (who used to be a share holder) and a gap where the other signature should have been there's a section which says the director can decided to pay a dividend to both or only one class of ordinary share. Does that mean I get nothing if my Boss decided? (the other director is his wife)

OP posts:
Washthedishesmaggie · 10/11/2016 13:52

The clause about dividends reads....
As regards income, the Directors may at any time resolve to declare a dividend on one or more classes of share and not one or other classes.

OP posts:
gettingtherequickly · 10/11/2016 13:55

Yes if the dividend was paid on class A shares then B shares wouldn't be entitled.
At least that's how I read it.
I'm an accountant, you might want to get some legal advice on it.

Washthedishesmaggie · 10/11/2016 14:09

Thanks..

I feared that. He's basically given me shares worth nothing just to shut me up.

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Washthedishesmaggie · 10/11/2016 14:50

He's also trying to freeze me out by ignoring me most days.

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Pootlebug · 10/11/2016 15:00

If the company were sold, you would get a share in the proceeds. Like getting there suggested, I would get legal advice on the rest.

I am an accountant too.

Washthedishesmaggie · 10/11/2016 15:57

I have a feeling that before he sold he'd find a way to move my shares to a bit of the company that's worthless.

He's such a nasty piece of work.

OP posts:
QueenMortificado · 10/11/2016 21:54

I've got no advice but bumping for you

Washthedishesmaggie · 10/11/2016 22:15

Thanks queen

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