Setting up a company?

[Onesource]

If a company is set up with 2 proprietary directors, one holding a 80% shareholding and the other holding a 20% shareholding, does that mean the director with the smaller shareholding is entitled to 20% of any assets, money or say even debts, if and when the company is dissolved or sold?

Thanks in advance.

 

[Importer]

A 20% proprietary director owns 20% of the company.

In normal circumstances they are entitled to receive 20% of dividends declared and they are entitled to receive 20% of the net assets if / when the company is dissolved.

In a Ltd company shareholders or directors are not normally personally liable for the companys debts beyond their initial investment in shares of that company. Sometimes directors can be held responsible for the companys debts where it can be shown that the company has been managed recklessly or fraudulently.

 

[hhhhhhhhhh]

If a company is set up with 2 proprietary directors, one holding a 80% shareholding and the other holding a 20% shareholding, does that mean the director with the smaller shareholding is entitled to 20% of any assets, money or say even debts, if and when the company is dissolved or sold?

Thanks in advance.

Shareholding is what is important, as share holders own the company.