I'm very new to being a shareholder in a business and know nothing of the financial side because I am just a shareholder and not allowed to view the accounts etc. Long story short my % in the company (that we started together) have dropped without me being notified due to the director just buying more shares to pay bills etc. Is this legally ok? Should I have been notified? Shouldn't this have been done via a loan to the business? If it was done because director knew the business would not be able to pay him back is this legally ok?
I believe the term you need to raise with the other director is "minority oppression".
While actions taken in bad faith are more likely to be found to be oppressive, conduct may be oppressive even if undertaken lawfully and in good faith if the result is a disadvantage or burden on the minority that is beyond what could be considered as commercially reasonable and fair.