Following a valuation of the farm’s assets two years ago, an agreement was reached that the remaining director would buy his colleague’s 40 per cent stake in the business.
Now the exiting director has had a change of heart and decided he wants to hold out for a better deal.
With an exact retirement date still to be confirmed, what does this mean for the remaining director – and for the future of the farm itself?
Writing for Farmers Weekly’s Business Clinic, Robert James, a partner in Thrings’ Agriculture team, takes a look at majority shareholding and directors’ rights in the context of the Companies Act 2006, and explains whether contracts sealed with a handshake are indeed legally binding.
To discuss this matter further, please contact Robert James or another member of Thrings’ specialist Agriculture team.