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I’m a shareholder and director of a business but am being forced out of my role. What can I do?

Sometimes things at work don’t work out, even as a shareholder and director. You can have a ‘without prejudice’ discussion with the business to see if leaving under an agreed exit is a possibility.

They may be prepared to agree to this if this also works for them: for example if it helps them resolve a dispute with you or if it allows a smooth transition to a new employee in your place.

As a shareholder and director, the terms of any exit are generally more complex than with a standard settlement agreement. Our team of employment and corporate lawyers are experienced in helping directors to exit on mutually agreeable terms, including giving advice on the duties a director owes to the company, any Restrictive Covenants, and the position with your shares.

What you should ask for and how to do this will depend on the strength of your bargaining position: it is advisable to take specialist legal advice before starting these negotiations so you have the best chance of getting the best final outcome. We can advise you on your legal position then guide you through any negotiation (or undertake the negotiation on your behalf if you prefer). See also the section on exiting under a negotiated agreement.

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