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debbie2
Junior Member
175 Posts |
 Posted - 12 June 2008 : 13:40:40
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What is the timescale on being able to dismiss a director of a limited company. We know that bankrupcy papers have been with the court for 2 weeks and it is expected that he is served with them within 48 hours. How soon will bank accounts be frozen?
Many thanks
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 12 June 2008 : 14:06:59
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Hi Debbie2 - welcome to the forum.
The banks freeze accounts when they are aware of the BR through either the OR or by checking the insolvency register/London Gazette etc.
The OR contacts banks fairly quickly after the OR interview so that accounts can by "unfrozen".
OR interviews are about 2/3 weeks after BR court date.
One of the BR assist experts be along soon to advise you on your first question
Hope this helps
Vicki x |
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debbie2
Junior Member
175 Posts |
Posted - 12 June 2008 : 15:57:29
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Thank you
Becoming more confused as to wether it is poss to sack a director when the petition is received by the courts and they serve it on the person, or do we have to wait until the procedure has been completed and it is in the gazette etc?
Many thanks |
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 12 June 2008 : 16:11:47
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I wonder if this is something that ACAS may be able to help you with as it is an employment law query as much as bankruptcy?
Their helpline number is 08457 474 747.
Vicki x |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 12 June 2008 : 19:04:41
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Hi there
probably a little unsafe to sack the director etc because of employment issues etc.
However it is a legal requirement of his Bankruptcy that he CANNOT REMAIN AS A DIRECTOR OR A LTD COMPANY.
He can either resign or you can give him the 288b forms for hims to fill in, otherwise the OR will do it for him.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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debbie2
Junior Member
175 Posts |
Posted - 12 June 2008 : 21:10:17
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Thank you for help!
Think I have worded the question wrongly.
Of course the director would not be sacked without sound legal reasons and backing, which we have plenty of, but couldn't work out when when bankruptcy commences and prevents him being a director. Is this when the papers are served on him or after the actual case has been heard. Sorry to sound dim but this is all new to me.
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 12 June 2008 : 21:25:56
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no problem
He must cease to be a director at the point of being made bankrupt ( or VERY soon afterwards) Therefore the time is when he has gone to court.
There is no reason that he couldn't do a 288b form before.
Has he got any shares / equity in the company that would form part of his estate in bankruptcy?
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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melanie_giles
Senior Member
1191 Posts |
Posted - 12 June 2008 : 22:07:41
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The date of the bankruptcy order is the relevant date, not the petition.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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debbie2
Junior Member
175 Posts |
Posted - 16 June 2008 : 19:55:59
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Thanks Melanie
On the advise of my solicitor I have resigned as director of a ltd company. The other director, who has been issued with a bankruptcy petition 2 wks ago by a creditor previous to our company, has now become the only director leaving me as major shareholder. Our concern is that he will take control of the bank account, although at present frozen on his request and use it to pay people other than those on our credit list. It is in credit and monies still going in. The bank will not commuicate with us and we fear suppliers used in our major business (15 yrs) will demand we clear their debts or not deal with us. There is enough money in account to clear all debts unless he missappropriates it.
We have been advised to reinstate ourselves as directors but this will take min 21 days and we fear he will put in a mandate to change the signitures to himself.
His previous actions regarding the company (no longer tranding) he has set up another ltd co, have been nothing short of fraudulent (forged sig on credit agreement, home ins through the co, car payments for wife etc).
We are sure he will either become bankrupt or enter into a cva when we will be able to dismiss him as a director but need any avenue to secure the bank account.
We already are owed £77,000 by him through his actions, of which we know he has not got, and are looking at a further £60,000 he misuses the bank account.
Any advise will be gratefullly accepted, we need it!!!!
Thank youquote:
Originally posted by melanie_giles
The date of the bankruptcy order is the relevant date, not the petition.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 June 2008 : 20:35:41
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Hi there
you need to get professional help NOW rather than seek answers to questions via the forum.
Absolutely critical that you get back in control of the company and the bank account - it may already be too late as the money may have gone before you can get back in as a director.
Suggest strongly that you speak to melanie 1st thing in the morning. DON'T WAIT UNTIL 10 AM.
The advice from solicitor is interesting as now you are locked out. Not particularly useful.
Speak to Melanie !!!!
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
Edited by - Reviva UK on 16 June 2008 23:03:55 |
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melanie_giles
Senior Member
1191 Posts |
Posted - 16 June 2008 : 22:49:24
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If you hold more than 75% of the shares then you can place the company into voluntary liquidation to ensure that creditors are treated fairly, and importantly to ensure that your shareholdings are protected. An insolvency practitioner can advise you on these options, and as Paul suggests I would act sooner rather than later.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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debbie2
Junior Member
175 Posts |
Posted - 17 June 2008 : 06:38:39
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We are taking professional advise but things are spiralling out of control, and it seems in his favour. How can a man who is so dishonest get away with this. We have found out since starting the business that this is the norm for him. He is very clever and seems to know the loopholes more than our solicitor.
The articles regarding the set up of company, apparently, may be so badly compiled we may have a case for negligiance.
If he does misuse the money would this mean that there may be a chance of prison when the OR or courts find out. We have submitted a thorough report to the bank requesting that they try to hold him off until we have directorships back.
You may find it interesting to know that the when the company was set up we paid for the assets of his old partnership, including a large machine. When it was found that a sig had been forged on the credit agreement of this mach we took it to a solicitor. The forged sig was his wifes and partner who then deemed the company nil and void. We did get £60,000 for the machine.
So much more to say but all seeming very pointless a moment, feel like we are the underdogs just because we are so honest!! |
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melanie_giles
Senior Member
1191 Posts |
Posted - 17 June 2008 : 09:08:06
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I think you need to get liquidators involved as soon as possible to protect the company's assets and your own shareholding.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 17 June 2008 : 10:01:29
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Hi Debbie,
It sounds like you need professional help NOW. If you go to the experts page, Paul Johns, Melanie Giles, and Brett England all do excellent work in this area. Why not contact one of them directly to get the ball rolling?
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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debbie2
Junior Member
175 Posts |
Posted - 18 June 2008 : 07:27:46
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Hi Melanie
We have left vmail on phone so hopefully can get to talk at some point. In the meantime does anyone know if two individuals (man and wife) who have run up debts of over £270,000 whilst in a business partnership, not a ltd co, can go into cva. The partnership has not been dissolved but they are now trading as a ltd company.
Thanks again
Debbie |
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melanie_giles
Senior Member
1191 Posts |
Posted - 19 June 2008 : 08:24:05
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Debbie
I will track the voicemail you have left and try to speak to you later on.
A CVA is only available for limited companies, but should not incorporate debts which were incurred by a previous partnership, unless these were all taken over by the limited company with the agreement of those individual creditors.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Topic |
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dismissing a director of a limited company
