All Forums  archive  Forum Questions  As directors and shareholders we are considering br.

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Screensize: 640 x 480 800 x 600 1024 x 768 1280 x 1024 UserName: Password: Format Mode: Basic  Help  Prompt  Format: Font Andale Mono Arial Arial Black Book Antiqua Century Gothic Comic Sans MS Courier New Georgia Impact Lucida Console Script MT Bold Stencil Tahoma Times New Roman Trebuchet MS Verdana   Size 1 2 3 4 5 6   Color Black Red Yellow Pink Green Orange Purple Blue Beige Brown Teal Navy Maroon LimeGreen Message: * HTML is OFF * Forum Code is ON Smilies [quote][i]Originally posted by Nick.44[/i] [br]My wife and I are directors and shareholders of our own limited company. We are considering bankruptcy as we are personally insolvent and there is no longer enough profit in the business to service our personal debts. (The company itself is solvent provided we only pay ourselves what we need to live. If we continue to take any more (i.e. to service our debts) there is a real risk that the company will become insolvent). Anyway, I understand that if we choose the bankruptcy route that neither of us can remain as directors or manage the company. New directors would have to be appointed and my wife and I would not manage the company, however we would continue to work for the company and draw a salary. My question is, what about our shares in the business (which may or may not reap a dividend in the future)? Would the shares be deemed to be an asset by the OR and would we have to sell them (i.e. sell the business) inorder to pay some of the creditors? I ought to say that the company is not worth an awful lot. It's solvent and makes a modest profit which is enough to pay our living costs only. The business is our only source of income and we would find it difficult to get "regular" jobs, so we are keen not to lose the company should we go bankrupt. Would the OR allow us to keep ownership of the it so long as we were not actually directors? Also, assuming we can keep the company (albeit not as directors), could we remain as signatories on the company bank account? Furthermore, one of our personal creditors is a company that gave us a loan for a car. Obviously, if we go bankrupt, the car would be taken away. We need a car for business as well as personal use. So, assuming that we'd be allowed to keep the company, our thought is to lease a car through the business. Would the OR have a problem with us doing this? Thank you for your time. I look forward to hearing from you. [/quote]   Check here to include your profile signature. Check here to subscribe to this topic.