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Legal matters

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Work related / HR advice required please

10 replies

sweetheart · 21/01/2013 12:51

I'm looking for some advice on how to handle a situation at work and wondered if anyone had any advice to give?

I'm a director of a company and have been thinking of changing my job for quite a while. A few weeks ago I posted on a facebook group about advice on looking for a new job in 2013.

Today my MD has shown me a print out of the page and asked to have a discussion with me tomorrow about where we go from here. He suggested that I resign as director, he clarified that he is not sacking me and I could stay on at the company but in what capacity and pay etc is unclear.

He said if I want to stay on as Director I need to lay out why for him tomorrow but there is no guarentee that he would allow it.

So where do I stand? Can he force me to resign as a director without sacking me? I think if I pushed him on my legal rights he would just immediatly terminate my employment, he does not like being pushed and would not worry about the consequences or the possability of me taking legal action - he is a very rich man and do whatever he thinks is best for the company.

Having said that I am entitled to look for a new job if I want to so I don't feel happy being forced into a position where I will take a large pay cut and quite possibly end up doing the same work just without the title of "director"!!!

OP posts:
hermioneweasley · 21/01/2013 12:57

Are you an employee?

sweetheart · 21/01/2013 12:58

yes I am

OP posts:
badguider · 21/01/2013 13:01

what did you post? did you say anything bad about your current company or position?

if you just asked for general career advice then i don't think they can sack you... any way you can just play it down? say you are thinking about your future career progression in general terms and want to reassure yourself that your current company is the best future for you...

sweetheart · 21/01/2013 13:06

No, it wasn't anything bad about my company or my position. It just said something about needing a new challenge and asking about approaching companies to introduce myself.

I've already had a chat with the MD today and told him that I am bored and feel there is no further progression left for me here but I know that those facts alone don't allow him to sack me.

OP posts:
hermioneweasley · 21/01/2013 13:10

If you are an employee then you have all the normal employment rights regarding unfair dismissal (assuming you have 12 months service) and contract changes. Having said that, he can do anything he wants, assuming he's prepared to write you a cheque for the compensation you are awarded.

If he makes it clear he wants you to go now rather than resign in the fullness of time, then suggest a compromise agreement with appropriate compensation. It may be better than staying somewhere where the relationship has soured.

flowery · 21/01/2013 13:12

Do you have a Director's Service Agreement? Are you a company director as in having statutory responsibilities in relation to the company at Companies House!

flowery · 21/01/2013 13:13

Sorry that should have been ? not !

sweetheart · 21/01/2013 13:15

So what would happen tomorrow if I refused to resign as director? I'm guessing he has 2 choices:-

Accept it
Sack me

Is there any other route he could go? And if he did sack me there and then that would be unlawful dismissal?

OP posts:
sweetheart · 21/01/2013 13:16

I don't have a directors service agreement. I am listed at Companies House as both a director and company secretary.

OP posts:
BobbiFleckmann · 21/01/2013 13:31

there are two ways you can be removed as director:

  1. because the company's articles say you can be under the circumstances given. Standard form articles would apply like this for cases of eg mental capacity / bankruptcy. careless use of social media would be a novel approach on this.
  2. by convening a special board meeting on not less than 28 days notice and getting an ordinary resolution of the board that you should be removed.

as company secretary, you'll of course be the one preparing the various notices of the meeting / proposed resolution...

Hermioneweasley can no doubt advise whether co-director's actions in relation to requiring your resignation as director amount to constructive dismissal.

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