alma1 wrote:kediveKed wrote:leona wrote:Hi Wazuans
How does one go about removing a dormant Director from a Limited Liability Company? - Removing from the documents that is
Secondly, can an LTD remain with only one Director?
Thanks in advance
Yes a director can be removed. The problem is if the director is a majority shareholder in the company. in such a situation it would be difficult if\she is not willing to relinquish the position.
You can negotiate with the director in question and offer to buy his/her shareholding in the company. obviously the offer needs to be really good. otherwise if/she refuses you can just form another company or find a way to dilute his shareholding...like mark zuckerburg did to Eduardo saverin in Facebook.
and yes in the new companies act 2015 a company can have one director.
kediveKed love your option much better. But explain slowly for us non-lawyers. So I have company A with 50% holding with x and y.
X wants y gone.
So you form company B that owns company A? Or how does it work?
@Alma,from my fisheating knowledge,If you form company B with one director(X as the sole director),you will still be in the same position (since you will only transfer your 505 shareholding to company B).
If Y is unwilling to go, the best way is to agree with Y to invite an additional shareholder(Z-to act as your proxy though) where both X and Y will each sell 16.67% of their shares to Z; then buy back the 33.33% from Z to become the majority shareholder with 67.67% shares and offer to buy off 33.33% of Y.
The other option is to dissolve the company.
It's not easy to remove an unwilling director/shareholder who has half or more shares in a company.
If Obiero did it, Who Am I?