Good afternoon, I am an MD of Limited Company with 75% shareholding,
I employ my wife as Company Secretary, my son as trainee and an
operations director, he holds 25% shareholding, although these are
registered in his partners name. He has been employed by me for 14 years
and been shareholder/director for 10 years.
Business has dropped off significantly, the largest single overhead now
being this director, I may need to take the decision to make this director
redundant, I have looked at other areas to cut costs, but the savings are
not enough.
My question is can I legally make this director redundant and what would
happen to the 25% shareholding held by him. The shares have been given
to him free of charge over the years. Would I need to buy them back and
at what cost ?
Thankyou for reading this, I look forward to receiving your suggestions.
Regards