Salesman guilty of gross misconduct
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30th January 2014
Some years ago, our client set up a web design business in
Canary Wharf with two partners, one in a technical role and the other a
Following the breakdown of one relationship, the salesman
announced that he was going travelling with his new girlfriend for
several months. In addition to being an employee of the business, the
salesman was also a company director and a shareholder, owning 33% of
A few weeks after the salesman left to go travelling, our
client received an email from one of their customers asking if they had
started work on his project as yet. The customer had paid a deposit but
there was no record of this. It turned out that the salesman had said
there was a problem with the companyís bank account and the deposit
should be paid to him personally.
Our client clearly wants redress for his partnerís gross
misconduct. In this case we need to deal with all three
positions that the salesman holds, firstly by removing his role as a
director of the company. As an employee, the salesman will still have
rights pursuant to employment law and will need to be dealt with
according to a set disciplinary procedure before his employment can be
terminated. Finally we will need to deal with the shares while
considering the risk of prejudicing a minority shareholder.
A shareholder agreement made at the outset of a business
partnership could protect the other shareholders in problematic
situations such as this one and enable them to claim back shares if
there has been a breach of the agreement.
For more information on disputes between shareholders and
please contact Tom Jellicoe
About the Author
Lawson-West specialise in commercial, business and employment law. Our team
of dedicated commercial solicitors can help with buying or selling a business,
business law and disputes, landlord and tenant issues and commercial property.
Our expert employment team can offer practical advice and guidance on all
aspects of employment law including redundancy, compromise agreements and
dismissal procedures. Visit
www.lawson-west.co.uk for more information.
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Article Published/Sorted/Amended on Scopulus 2014-02-13 09:39:13 in Legal Articles