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2006-10-16 02:18:36 · 5 answers · asked by Anonymous in Business & Finance Other - Business & Finance

i have a 25% share in the limited company and im a director.

2006-10-16 02:26:47 · update #1

its only a small size buissness (5 employes). i own 25% other person owns 75%, am i entitled to any profits??

2006-10-16 02:32:25 · update #2

5 answers

Are you saying that you own 25% of the shares?

Are you also a director?

You might only be entitled to a dividend. The best things to do is check your 'memo & arts'

2006-10-16 02:21:22 · answer #1 · answered by 'Dr Greene' 7 · 2 0

You effectively have two distinct "roles" in the company.

As a shareholder you are entitled to dividends (if they are paid) in proportion to your shareholding. (Ignoring the vagaries of different share classes). You also have voting rights (again assuming a straightforward share structure). Also as a shareholder you can sell your shares at any price that anyone will buy them. In practice this might be difficult for a small company as there is no liquid market for the shares and your most likely buyers could be the other shareholders.

As a director you have certain legal responsibilities in the running of the company. Check here for more details:
http://www.companieshouse.gov.uk/about/guidance.shtml

2006-10-16 09:31:41 · answer #2 · answered by Anonymous · 1 0

you own only 25% of the company depending whether your on the board you would have a 25%say in the running of said company.
but it depends on who owns the other 75% as to whether you have any say so if someone owns 49% he is the major share holder and has the last say right or wrong the next share holder would have 26% and your 25% as this would give a joint majority of 51% and would make the two of you the majority and then you would have the last say.
hope this helps

2006-10-16 09:29:00 · answer #3 · answered by tonyinspain 5 · 0 0

As a part owner you are entittle to share of profits and/or dividends...it all depends on what the operating agmt. Sometimes, when a business is starting out, the owners are not paid anything and any profits are re-inmvested back in the business.

When the business becomes more profitable, the investors may decide to pay out a dividend and/or pay out the profits based on share of ownership.

The bottom line is what does your company's operating agmt call for? Is the business in a position to pay out profits?

2006-10-16 10:36:49 · answer #4 · answered by boston857 5 · 0 0

Do you have 25% of the voting rights?

2006-10-16 09:29:01 · answer #5 · answered by Anonymous · 0 0

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