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What has the director said about returning your deposit exactly?
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Many thanks for your patience. It is extremely rare for what is known as the ‘corporate veil’ to be lifted. This means that a limited company will have its own legal responsibility and be liable for its own debts and the corporate veil protecting those in charge of it will not be lifted, unless extreme circumstances require it. There are plenty of examples where the directors running the company have not done so in the best manner and have been responsible for losing business, bringing in business based on what could be described as misrepresentation and so on. But that does not make them personally liable for the debts of the company. And it is only in rare cases of serious fraud where it is clear that someone was running a company in a completely fraudulent and negligent manner that the courts may consider making a director personally liable. But I must say – that is very rare indeed and certainly not given lightly and in these circumstances it is very unlikely that it would be applied. Of course there is nothing stopping you from trying to pursue them personally but be prepared for a tough legal challenge.
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Thank you. Whenever a dispute arises over compensation owed by one party to another, the party at fault can be pursued through the civil courts. As legal action should always be seen as a last resort, there are certain actions that should be taken initially to try and resolve this matter informally and without having to involve the courts. It is recommended that the process follows these steps:
1. Reminder letter – if no reminders have been sent yet, one should be sent first to allow the party at fault to voluntarily settle this matter.
2. Letter before action – if informal reminders have been sent but these have been ignored, the party at fault must be sent a formal letter asking them to resolve this amicably within a specified period of time. A reasonable period to demand a response by would be 10 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to pursue the compensation due. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.
3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed it will be sent to the other side and they will have a limited time to defend it. If they are aware legal proceedings have commenced it could also prompt them to reconsider their position and perhaps force them to contact you to try and resolve this.
Whatever correspondence is sent, it is always advisable to keep copies and use recorded delivery so that there is proof of delivery and a paper trail. The court may need to refer to these if it gets that far.