Legal Advise

southern100 · #1 23-06-2009, 06:25 PM

Hi,

I am a director of a LTD company, I have recently started the company with the director of another company that i used to work for. I have now been made redundant from that company and i am looking to walk away from the other company.

Between us we have put in about £4'700 including set up costs,materials and labour for the work carried out. We have carried out £2'800 of sales and have £4'500 of work to do which will generate a profit of £2k ish. I proposed that we just shut the company and both take a hit on whatever money we have lost. This was agreed but now he wants to keep it and wants me to walk away with nothing.

I dont want to be associated with the company, and the £500p/m insurance costs. I was going to transfer the insurance to the new company that i have formed as the company would be liable for the full premium.

He has taken all of the sales money that has been paid for the work that has been carried out. I want a quick resolution and i dont mind loosing some money but i dont want to pay for the start up to £100k of work that has been quoted for him to carry it on. I just wanted to close it and loose some money or let him have it and pay me something for it.

I am looking for a quick and fair resolution as i dont want to be associated with the company and liable for whatever he does with it, as he is trading in an industry that he knows nothing about, and the insurance company will be looking for money as i have now cancelled the direct debit that i was paying from my personal account.

Does anyone have any ideas on the best way forward and what i should expect?

#2 23-06-2009, 09:26 PM

Hi Southern and Welcome to FBF

Might just be me, but I found that slightly hard to follow as to which company was which, I may be able to help if you can clarify a few things...

Quote:

I am a director of a LTD company [A], I have recently started the company with the director of another company that i used to work for. I have now been made redundant from that company [B] and i am looking to walk away from the other company.

OK if I am reading that correctly you have started a new company that I have labelled A with a Director of a company that you formerly worked for who owned a company I have labelled B. Is that correct so far...?

If so, which company are you talking about in the next paragraph?

Quote:

Between us we have put in about £4'700 including set up costs,materials and labour for the work carried out. We have carried out £2'800 of sales and have £4'500 of work to do which will generate a profit of £2k ish. I proposed that we just shut the company and both take a hit on whatever money we have lost. This was agreed but now he wants to keep it and wants me to walk away with nothing.

Big Pete · #3 23-06-2009, 10:45 PM

Hi and welcome

I agree with IP2 its a little confusing , but if i am reading it right then i would say that its a little unfair on you..

I would be inclined to not resign as Director and let your partner take all the business etc.. i would most certainly not pay anymore in of any form but insist he pays you for estimated profit still to be realised from your share of the business.

I would demand a fair share . advise if he isnt doing it straight down the middle you shall inform the bank and stop the account and take your chances with the official closing of the business ..

Unless he is majority and the only bank signatory then you are screwed unfortunately

marwin24 · #4 04-09-2009, 07:32 AM

thank for useful information it help in future so thanks all for the information

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