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liquidmoney
Starting Member
United Kingdom
2 Posts |
 Posted - 28 June 2010 : 16:22:39
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| Hi, I am going bankrupt next month. I'm aware of the limitations during bankruptcy around directorships and acting in a managerial capacity while undischarged. My girlfriend is about to setup a new Limited company to carry out business as a pet-sitter. I am currently self-employed and working on fixed term contracts (usually 6 months). The contracts must be made with a Limited company as it is an agency condition. Is there any reason why these contracts can not be made with my girlfriends new company while I am paid a salary that matches my expenses? Obviously I will hold no shares, I am comfortable with this. Is there anything illegal in doing this as long as I do not act as a shadow director? In fact, what actions would deem me a shadow director? |
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RHB
Senior Member
1159 Posts |
Posted - 29 June 2010 : 07:39:35
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| Is what you do in the pet sitting world? |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 29 June 2010 : 09:31:11
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Hi Liquidmoney
The regulations say something along the lines of - it is an offence for an undischarged bankrup to be involved in the promotion, formation or management of a company - as far as I can recall it doesn't specify a "limited company"
Promotion and management covers a wide area.
There is nothing to stop you holding shares in a company (although they could be classed as an after acquired asset) as long as you are not involved in the day to day running, management and decision making process.
If your girlfriend sets up a limited company, and chooses to employ you directly, or via an agency, that is up to her and has to be her decision to negotiate wages, expenses, remuneration etc.
It is impossible to provide a definitive list of what actions would make you a shadow director, (partly because in some limited companies non-directors have powers delegated to them which could arguably be classed as acting as a director - e.g. signing cheques, setting prices etc) so it is safer to get advice before doing something which may be challenged later.
Good Luck
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
Edited by - Bridgewood on 29 June 2010 09:32:09 |
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liquidmoney
Starting Member
United Kingdom
2 Posts |
Posted - 29 June 2010 : 12:43:31
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| Where would be the best place to get such advice? |
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Bridgewood
Junior Member
United Kingdom
222 Posts |
Posted - 29 June 2010 : 13:00:13
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Hi liquidmoney
If you click on "experts" to the left of this page you will get a list of people/firms to contact - alternatively most insolvency practitioners will be able to assist although some may not give free advice - alternatively speak to CAB - they will be able to put you in touch with someone in your area
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
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