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Nick.44
Starting Member
1 Posts |
 Posted - 18 January 2011 : 20:47:06
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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.
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debtinfo
forum expert
2826 Posts |
Posted - 18 January 2011 : 21:05:23
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ok, the shares will be assets in the company, what the OR does with them will depend on their value.
If you let other directors take over, will they be able to run the business, do they know enough about it, how will they be paid if it doesent make a large profit now.
As regards a car, the company can do as it wishes if it wants to provide you with a car it can do, this may affect your tax, how will the company afford the car if it can only just pay you plus the new directors. Will the new directors allow you to have a car
Can you sign cheques, yes you can if te directors allow you to.
Some things to think about there
Finally what sort of work do you do, do you need to be limited can you be soletraders
hope that helps |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 18 January 2011 : 22:17:22
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Hi Nick
sorry to read your plight
limited companies and bankruptcies can be a real danger area it all has to be managed correctly and in the right order
Please can I suggest speaking to one of the experts.
I know that Paul Johns at Reviva, helps lots of LTD companies in similar circumstance to you, he may even have options that will keep the business trading.
good luck Richard |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 18 January 2011 : 22:43:13
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Hi
You really need to speak to an expert to ensure that you get full and accurate advice.
Individual bankruptcy has dramatic effects upon a Ltd company and for example remaining on the company bank account as a signature is an absolute no no. This would indicate that you are "shadow directors" and is a massive problem and is likely to collapse the company in addition to helping you qualify for restrictions for doing so.
You need to tread carefully, remain perfectly legal and get some choices to help you become debt free and retain an income.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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As directors and shareholders we are considering br.
