Problematical Shareholder

Problematical Shareholder

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Several large freehold properties in a private cul-de-sac. A private limited company is formed to undertake the adminstration of the communal areas etc.

It is the normal proceedure that on selling your property you surrender your share and transfered to the new owner.

Unfortunately, one former owner will not sign a share transfer form or give back the share certificate, despite personal visits from the Company Secretary and letters. What is the simplest way to disenfranchise him, bearing in mind that any costs may have to be recovered from the exisitng freeholders.
Robert Clubb

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By User deleted
01st Aug 2007 13:19

obstructive former owners
Neil is right. The Memo and Articles are the starting point. If they have been properly drawn, the former houseowner should no longer be eligible for ownership of a share and the company can probably cancel the share and issue a new one to the new owner. As has also been said, the new owner's solicitor seems to have fallen down on the job and any expense should be directed to the new owner who has a good case for making a recovery from his solicitor (or the solicitor's insurers).

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By neileg
31st Jul 2007 10:57

Memo & Arts
It's not unusual for the Memo & Arts of these companies to have a cluase that means membership of the company is dependant on owning a revelvant property and for the deeds of the property to require membership of the company. I'd check here first. You may find that the membership is void and you don't have to worry about getting the certificate or the share transfer.

If this is not the case, then at worst, just ignore the shareholder. There's almost nothing that a minority shareholder can do in a private company, anyway.

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By mickeyparish
01st Aug 2007 12:40

Bill him !
Send him the annual service charge bill to pay....

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