Can a company force me to give power of attorney to sell my shares?

[MummytoBe1111]

A company that I own minority shares in is getting sold, I got an email from the company asking me to sign documents to give the CEO power of attorney. I did not sign. They email me a drag notice stating that if I did not sign the documents I will be considered to have agreed to give them power of attorney and I will not receive any payment unless I give my financial information to another business that they are using to process payment. The company refuses to give share price or any information on how much I would receive.

My question is, can they actually force me to give them power of attorney, even if I explicitly refuse? and can they keep the money from the sale if I do not agree to their payment method?

I appreciate all advice

No - not usually ( anything is possible if they are crooks). There might be something in the articles saying they have to hold it in trust for you for a certain period. Much more sensible for them to speak to you and give you info you need so you’re comfortable providing bank details. You could just ask for a bank cheque addressed to you in payment and be ‘old school’.

But as I’ve said, find and read the articles - that way you’ll know exactly what they can do - I was told the latest articles MUST be on the company’s file at Companies House by law.

You can look the articles up and should, but is there a shareholders' agreement that you signed? How did you acquire the shares? Were you/ are you an employee? Do you know how many shareholders there are?

Thanks. I've added to my knowledge bank re the POA advice. Always a bonus 😍

The third party payment company isn’t necessarily sinister. I’m in a different field but I read in a recent publication that many large law firms now use these independent payment agents as it’s too much hassle for them to take and pass on monies - effectively acting like a bank, which they’re not.

I wonder if the payment agent has to be regulated by the Financial Conduct Authority - if you have the name, you can look it up or it might say ‘regulated by etc etc ‘ on its website. If so, you could be more confident giving them your bank details I’d have thought.