Assuming that you each owned 50% of the same class of shares, any dividend payments that your former BP received should also have been paid to you. Leaving aside the point on whether your resignation as director was handled correctly, as a shareholder you are entitled to receive the annual accounts.
Can a shareholder be an employee of a company?
The Sixth Circuit held that a shareholder-employee of a company used the company bank account for personal use. As such, the Court ruled the shareholder was an employee and owed employment tax. Joly v. Commissioner, T.C. Memo. 1998-361, aff’d by unpub. op., 211 F.3d 1269 (6th Cir. 2000).
How are S corporation employees and shareholders treated?
Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes.
When does a corporate officer become a shareholder?
When corporate officers perform a service for the corporation and receive or are entitled to payments, those payments are considered wages. The fact that an officer is also a shareholder does not change this requirement. Such payments to the corporate officer are treated as wages.
Can a 50% shareholder ratify a directors salary?
Also, the other shareholder can’t ratify any approval of directors salary’s and other areas that require shareholder ratification without your vote too. He only has 50% and that’s not a majority.
Who are 50% shareholders and directors stealing money?
50% Shareholder & Director stealing money from… Yesterday I had a client come to me (Director A) with a problem regarding his business parter (Director B), they are both 50% shareholders and directors. Director B has been taking large sums of money from the business without speaking to Director A.
How many directors are needed to pay dividends?
The Company has 2 Directors, each with a 50% shareholding. One Director actively earns fees, the other does not but is nominated CoSec (typical one-man consultancy business with consultant plus co-habiting partner). Dividends have always been paid 50/50.
