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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We have decided to call in the loans on a company that we have

Resolved Question:

We have decided to call in the loans on a company that we have a 49% share as an investor only. The director of this company has set up another company thus walking away from the debt. The landlord has just renewed a lease with the director under a different company name. Where do we stand.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 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 personal guarantee at all please?

JACUSTOMER-r1jl2lsv- :

what do you mean by a personal guarantee - a reference?

Alex Watts :

No, did the director personally guarantee the loan?

JACUSTOMER-r1jl2lsv- :

The loans were guaranteed under the company name which was ltd

Alex Watts :

Ok - do you have anything in writing?

JACUSTOMER-r1jl2lsv- :

yes a terms of agreement stating amount and the interest repayments. No interest payments were made, after 4 years of management it became apparent that the director was not a business person and we asked them to remove themselves from the day to day management so the business could be resolved. They refused. Set up another ltd company

Alex Watts :

Doing the same thing?

JACUSTOMER-r1jl2lsv- :

yes. they have changed the name of the company by one word and we understand have transferred money out already of the account. The landlord has issued a new short term lease, presumably in the name of the new company. We are meeting him tomorrow.

Alex Watts :

Potentially you have a claim against the Director for breach of duty.

Alex Watts :

If you have loaned the money, he is doing the same thing, with the same or similar name and from the same premises clearly there is a claim here

Alex Watts :

It is almost fraud which would be a criminal offence.

Alex Watts :

So potentially you have a claim against the Director

JACUSTOMER-r1jl2lsv- :

What about the landlord does he have any responsibility

Alex Watts :

No

Alex Watts :

You have no contract with the Landlord.

Alex Watts :

Your contract is with the Company and therefore by implication the Director.

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-r1jl2lsv- :

How would you go about making a claim against the director

Alex Watts :

Ideally you would need to consult a Solicitor to draft a letter and set out your position

Alex Watts :

Then you would need to complete form N!

Alex Watts :

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf

Alex Watts :

And the matter would be listed at Court.

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-r1jl2lsv- :

So you can be a director of a insolvent company and set up a new one in an instant with no issue. By making a claim against the director would we be able to strike them off as being a director going forward?

Alex Watts :

No.

Alex Watts :

If its insolvent then it should not be trading.

Alex Watts :

It would be a matter for Companies House and the Official Receiver whether proceedings are brought to strike then off as a Director.

JACUSTOMER-r1jl2lsv- :

Am I able to discuss this with my husband and ask any more questions later?

Alex Watts :

Of course.

Alex Watts :

Please remember if you do leave feedback the question does not close, although the site gives the impression it does and you can come back at any time

JACUSTOMER-r1jl2lsv- :

ok do I need to pay again?

Alex Watts :

No......

Customer:

am just wondering as a shareholder of the company does the landlord still have no obligation to the shareholders?

Alex Watts :

Landlord - no

Alex Watts :

Does that clarify?

Customer:

yes I think it does. Not great really.

Alex Watts :

I am sorry its not better news and certainly not the answer I want to give you, but I have a duty to be honest

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’.


 


Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/


 

Customer:

HI Alex - just one last question. If the director of this company has not formally appointed an administrator yet and the company is not in administration then has the landlord acted rashly by taking up a new lease?

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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