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The original director of a business is now over the retirement age and he is under pressure from a new director and co-shareholder to retire. A compensatory payment of £30,000 has been mentioned
Our clients have operated a business through a limited company for the past seven years. The original director who is now over retirement age is being asked to retire. This request is coming from the new director who was previously an employee and is now in his mid-thirties.
The shares in the company have always been owned 50% each by these two individuals although the younger was not originally registered as a director.
The younger director has been paid all his remuneration from the company through PAYE. Due to multiple other business interests the older director has withdrawn his income through a management charge to another limited company although director’s remuneration of £6 000 per year has been paid to him under PAYE in the past two years. Dividends have also been paid to the shareholders.
The older director is requesting a compensatory payment...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
