Disqualification as a Director and Shareholding

I own the 50 per cent of a company with my sister. She has been barred from being a director. This has impacted badly on the company. Can I force her to hand over her shares to me?

Disqualifications are made where the conduct of a director has fallen below the standard expected of a competent director. Unless there is a provision in the company’s articles requiring a shareholder to be a director, there is no impediment to the shares being transferred.

Owning shares gives the shareholder the right to vote at meetings, but this would not constitute management of the company and thus breach the disqualification.

If you have a dispute involving a company remember Hylton-Potts have a free confidential email and telephone advice service.