There is still one other active Director, and another that was removed last year. The debts arose as the remaining Director removed some of his investment, leaving the company unable to pay its bills
I dont think any additional debts were incurred after this point
I dont think any additional debts were incurred after this point-
my main concern is for my new business, can my stock be taken, and would putting it into a limited company protect this ?
Under the Insolvency Act, directors incur personal liability for wrongful trading if, at some time before the commencement of the liquidation, they knew or ought to have concluded that there was no reasonable prospect of the company avoiding insolvent liquidation.
Your conduct will be assessed by reference to a reasonably diligent person having both the general knowledge, skill and experience reasonably expected of a person carrying out your duties as a director, and the general knowledge, skill and experience that you have.
You will have a good defence to a wrongful trading claim if you can show the court that you took every reasonable step to lessen the potential loss to the company’s creditors
Hi again, I have personally taken huge steps in order to make sure many creditors were paid by paying them back in stock then buying off them from my own money in order that they get what they were due.
The remaining Director since joining the company a couple of years ago has solely controlled the bank account and the company's accounts. Leaving me completely unable to influence who and how much was paid out etc. The only way I could pay any bills was to invoice for equal value stock to clear the debt.
Hi once more, he is also a millionaire, and I dont even own a house !!