Small family business. 4 shareholders. 2 are A shares 2 are B shares. One B shareholder has gone bankrupt Bankrupt trustee is demanding business issue dividend to settle debts plus his own costs. A.shareholders vote NO. Trustee also claims to have power to wind business up to collect funds. Advice please.
Get immediate legal advice especially if a member of Federation of Small Businesses (or speak to your accountant).
They will be pushing for the other shareholders to buy the bankrupt one out BUT you need to try and make sure that any Trustee fees are paid for by the bankrupt one.
At this stage you need to be doing anything possible to reduce risks.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
You do need proper advice and there are a number of things to consider. The articles of association may have the answer as to how to deal with insolvent shareholders and do the others have premeption rights which would allow them to to purchase these shares.
It is a specialist area and requires specialist advice.
