Getting rid of management

[Heraldeer]

The company I work for is in crisis.  The main reason is one of the directors is seemingly doing his utmost to run the company into the ground.  Everybody in the company knows this guy is useless, however the other directors seem either afraid or unwilling to give him the boot.  Is there any way employee power can oust him if we all petition or do something else?

[smudge]

This guy doesn't live at No. 10 Downing Street, does he?

[Hippy]

The shareholders appoint Directors, and they have to have either an Annual General Meeting, or an Extroardinary Meeting to take action to remove the rogue Director.

 

The Memorandum and Articles of Association will lay down how many shareholders it will take to call such a meeting, and how many makes a valid meeting, and the majority required to oust Directors.

 

[Hgrove]

Unfortunately as employees there is precious little you can do.  Under sec. 309 Companies Act 1985 "the matters to which the directors of a company are to have regard in the performance of their functions include the interests of the company's employees in general, as well as the interests of its members."  It is a rather toothless provision, however, because the duty is owed by the directors to the company alone.  This provision does not give the employees standing to enforce this duty - even if they happen to be shareholders (because of the rule in Foss v Harbottle - can't remember well enough to explain, sorry).  You need to get advice from a law centre, union or ACAS.  If he it really looks like the company might go under, perhaps you could prepare a management buyout bid (???)

[karabulut]

Nice one smudge..

[smudge]

It's the way I tell 'em!