Share Lien

[VirtualDes]

Hi

I am a co-director and 50% shareholder in a limited company with one business partner. The company share capital is £2 (we have a £1 share each).

My issue is that the other shareholder is claiming that he has lien over my share. His claim states that he paid for the 2 shares when they were issued using his personal bank account (which he did, we hadn't set up the company account at the time). I paid him £1 cash at the time, but have no receipt and he is denying this.I do not owe the company any money. (For info, the company has only traded for one year, and roughly broken even)

My question is does he have any claim?

This is a worry and I really appreciate any advice you may be able to give me

Thank you

[Incredulum]

You say he says you owe him £1? So pay it to him and get a receipt from him so he can stop these silly games. (My suggestion is that you should ditch him as a business partner as he clearly is not to be trusted.)


40 years ago my father borrowed £5,000 from a bank for a house. £1 has been left outstanding on the mortgage so that the bank would continue to hold the deeds for free. Indeed the bank is owed money and has a charge over the house (and the house is worth £x000 these days (where x is much more than 5!). That charge can be settled by payment of £1, it does not give the bank the right to get the whole house!