It is a common practice for a shareholder to be a director of the company at the same time. Therefore, the employment law aspect must be thoroughly considered. Failure of which could amount to wrongful dismissal, unfair dismissal and/or whistleblowing. There are only a small number of ways to remove an a director (e.g. voluntary resignation or via the articles of association).

Is a good practice to deal with the departure by way of a settlement agreement if the shareholder is also a director. Not only will this stipulate the terms of the departure, but this will also protect both parties’ interests during the entire process and protect the company post departure.