I'm a director and shareholder of a family business along with two other brothers. Unfortunately one of them has become delusional and is under psychoanalysis. I assume he cam be removed as a director but can his shareholdings be acquired as well? Tks
NSW Directorship/Shareholder private company
- Thread starter Knightmare
- Start date
You can't force him to sell his shares or take them from him. He can willingly do it so long as he has sufficient mental capacity. If he doesn't, or it's in doubt that he does, any negotiations will need to be done with his lawful guardian.
Agree with Rob. Just because someone has mental health issues there is no right to strip them of their assets.
If you don't have a shareholder's agreement covering this eventuality then he keeps his shares.
If you don't have a shareholder's agreement covering this eventuality then he keeps his shares.
Similar threads
