I'm a director of a limited company, I'm the only employee ( My girlfriend is the company secretory) the company is suffering badly with the recession, but in the past has been very successful I can see it picking up in a few years.
But personally my finances are in a terrible state, I'm living on my credit cards and owe about £25K, this seems to grow weekly.
I want to go bankrupt, but will the company have to stop trading, it owes no money and I believe it will recover and start to show a bigger profit. I could live on the small wage it can pay me if I didn't have to make so many repayments.
it sounds daft but My father started the business and it would break his heart it went bust he passed it on to me with so much pride.
If you declare bankruptcy this does not mean the company must cease trading. It does however mean that you can no longer be a director. So let's assume you resign as a director and your girlfriend becomes the director. The question is if there is any value in your shares of which I presume you hold 100%.
If your shares have a value they will be claimed by the OR in bankruptcy. If the company has assets including any book value or trading name value then your girlfriend would have to purchase your shares at that value and the monies would pass to your estate which vests in the OR.
I'm a director of a limited company,
Posted - 30 March 2009 : 23:01:15
