Individuals being removed as company director and/or shareholder without just cause happens frequently – more frequently that you think.
Why Would a Director or Shareholder Be Wrongfully Removed?
Anyone who is in possession of the Companies House login details can go in and add falsified records about a director or shareholder. Someone could:
- remove a director from the company;
- add a false address;
- list fictitious directors.
If this happens, you will need to go to court. The only issue is Companies House is seldom supportive of complying with court-related matters.
Why Would Someone Falsify a Record?
There are a number of reasons why someone might choose to falsify records with the UK’s Companies House registrar. In some cases, it may be done in an attempt to mislead shareholders or creditors about the financial health of the company or conceal a transfer.
Why Can I do if Someone Has Falsified a Record?
If you know who has falsified the record, you can ask them to correct the misinformation. If they are not complying with that, the next best thing to do is file a freezing injunction against them in order to protect the company cash and assets.
If the damage has already been done e.g., you’ve been removed from the company and assets have dissipated, you can claim for damages against the wrongdoer.
If you don’t know who the wrongdoer is, you may seek a Norwich Pharmacal Order that legally requires banks and building societies to give up information regarding the transfer of any assets that may have resulted from the actions of the wrongdoer.
The last option (if you are a shareholder) is to take legal action against any unfair prejudice that has been caused to your shareholding. The best way for this is through a petition at court which will allow you damages in exchange for requesting those who committed these actions be held accountable and make amends with what they have done wrong, if possible!
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