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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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we are a small company with just 2 directors, my co director

Resolved Question:

we are a small company with just 2 directors, my co director has walked out and said he is resigning, we are about to begin winding up the company and he has left me to cope with this alone. should he have given notice and what are his financial obligations ? also can he expect to be paid ?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

Do you have a Directors agreement? Do you have any personal guarantees?

Customer:

I'm not sure about a directors agreement but we had to give personal guarantees to the bank for the overdraft

Alex Watts :

Ok - well he can't just walk away from that. He will be joint and severally liable.

Alex Watts :

If he has walked away you can close the Company down as you want.

Alex Watts :

Ideally you should liquidate the assets to pay back the bank.

Alex Watts :

If there is a balance left after this both you and he will owe it - he can't just run away and expect no comeback.

Alex Watts :

But stop his cards, cheque book, bank account access etc, if he has resigned.

Alex Watts :

To make sure he does not take anything

Alex Watts :

If there are any assets or money left after the bank is paid then this needs to be split between shareholders.

Alex Watts :

But he will remain liable for the bank debt until cleared.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

No, thank you very much

Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.


 


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