RI writes: This column recently looked at how minority shareholders might be affected by a company’s liquidation.
Is the position of majority shareholders different? I am the major shareholder of a company that has been wound up. A liquidator was appointed and some assets have been sold for less than I think they are worth. I will not recover the full value of my loan to the company and my shares are worthless. What can I do?
If a shareholder believes that the liquidator has sold assets for less than their market value, he can bring an action against the liquidator to compensate the company for his action, writes Ian Robert, insolvency partner at Kingston Smith.
The value of assets may fall considerably once the company is in liquidation, so the “going concern” valuations that its directors and shareholders may have considered reasonable before liquidation are unlikely to apply after the event.
Advertisement
A shareholder or creditor can try to get compensation for the failings of a liquidator and may also approach the latter’s governing body, which may investigate further. The ultimate sanction is withdrawal of the insolvency licence in cases where conduct is considered to be very poor or fraudulent.
LOOKING AFTER HOME WORKERS
CL writes: Our business is growing and running out of space. A number of employees have asked if they can work from home, which I am happy with. Am I responsible for their health and safety and do I need to amend their employment contracts?
Advertisement
Home working can bring a range of benefits to both employer and employee. But it needs to be properly managed, writes Peter Done, managing director of Peninsula. Agree goals and deadlines for tasks given to an employee. See if these targets are met and provide feedback if they are not.
You have the same responsibilities for the welfare of your home workers as for those who work directly for you. You will also need to carry out a health-and-safety risk assessment at their homes. Take into account equipment, lighting levels, trailing cables and so on. Staff using display screens are covered by rules and may be entitled to subsidised eye tests and glasses. You will still need to keep records of any serious accidents and injuries to home workers.
The place of work should be clearly stated in the contract of employment.
If someone working on your premises begins working from home, you will need to amend the contract. You must follow set procedures when doing this but as these employees have requested the change this should not be onerous.
Kingston Smith, the chartered accountant, and Peninsula, the employment-law firm, can advise owner-managers. If you have any questions, write to Business Doctor, The Sunday Times, 1 Pennington Street, London E98 1ST or fax 020 7782 5765. Advice is given without legal responsibility
Advertisement
For previous answers on today’s topics and related web links visit: kingstonsmith.co.uk/bizdoc peninsula-uk.com/PeninsulaPress/PenQofBus.htm