Tyler has noted that if there is any complaint against his proposal he will use his majority shareholding to confirm his actions. Advise Eleanor as to any possible remedies

 

Company law

Description

PB Falcon Ltd is a successful business owned by Tyler. Eleanor, a committed and dynamic manager was instrumental in assisting Tyler in making the company successful. To reflect this Tyler gave Eleanor 15% of the shares in the company and a seat on the board as the finance director, and agreed to split the dividends 50/50 between the two of them. Tyler also promised to make Eleanor an equal shareholder within 5 years.

The impact of Covid-19 has brought trouble for PB Falcon Ltd and so Tyler has decided on the following actions:

• Remove Eleanor from the board, making her a paid employee only.

• Only paying a dividend in accordance with her shareholding.

• Transfer the company property to himself.

• Divert future orders to a new company owned and controlled by Tyler.

Tyler has noted that if there is any complaint against his proposal he will use his majority shareholding to confirm his actions.

Advise Eleanor as to any possible remedies

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