We were approached for advice by a director/shareholder whose position in a company had become untenable due to fundamental differences between himself and the other shareholders about the future direction of the company. It was time for a dignified exit and also one that ensured he was not ‘hung out to dry’ by the split.
The other shareholders could not be forced to buy our client out. There were significantly varying share valuations and, unless our client’s shares were bought in a tax efficient manner, he would lose a considerable part of the value. Our client was being progressively marginalised and needed to exit quickly for his own sanity, he also wished to lead the negotiations himself.
Jane Sachedina, leading for Sachedinas Solicitors
Client’s accountant
We and the shareholder’s accountant ‘fed’ information and tactics to our client on a prompt, proactive and regular basis. He listened to the advice he was given and was tenacious and courageous (despite the ‘on the ground’ situation being personally very difficult for him). Our client then engaged in the face-to-face negotiations with the other shareholders. Once a full Heads of Terms had been agreed, we become ‘visible’ and handled all of the document preparation and completion of the sale of his shares.
Acting on our advice, and that of his accountant, in a style which was comfortable to him, our client achieved almost everything that he required with very little compromise on his part.