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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My ex wife was the 100 % shareholder of the company and was

Resolved Question:

My ex wife was the 100 % shareholder of the company and was a Director from 27/3/2003 until 25/10/12.
I took over as the Manager Director from that date, 1 months before that we signed the paper work with the bank to give me the sole signature on the company bank account. The first set of paper was lost by the bank.
In October/November we did a second batch of paper ( the same as before which I personally deliver to the bank ) but for some unknown reasons it was lost again.
In December the bank told me that they were looking for it .
But the bank account was suddenly closed without my authorisation in December 12. She gave the order to the bank but she had resigned as the director in October.
My question is in 2 folds
1 ) Was the bank at fault to take instruction from her as the only shareholder and not as a director.
2 ) As she got the right to do that because I have now discovered that money has been taken out of the account as her personal drawings when the profit of the Company was not even half of what she took and is now on the verge of been insolvent.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is ***** ***** 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, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.

Alex Watts :

Did the bank ever write to the Company please?

Customer:

no

Alex Watts :

Ok

Alex Watts :

In that case the bank can't act on her instruction

Alex Watts :

If she told them she resigned, they should NOT take any further instructions

Alex Watts :

They can only take instructions from Directors and NOT shareholders

Alex Watts :

Therefore the bank are in breach

Alex Watts :

You could sue for loss and damage and claim compensation

Alex Watts :

You need to write to the bank, set out your complaint and any losses and ask for a response

Alex Watts :

They should investigate the matter and report back to you

Alex Watts :

Once you have their final response and if unhappy you can go to the Ombudsman

Alex Watts :

They offer a free independent service at : www.financial-ombudsman.org.uk

Alex Watts :

If you are still unhappy you could potentially issue a claim against the bank

Alex Watts :

If its under £10,000 it will be a small claim and you wont need representation

Alex Watts :

You can do this online at: www.moneyclaim.gov.uk

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Dear Alex

Customer:

I cannot thank you enough , you are great

Customer:

Alex maybe I have not made myself clear .She has always been the sole signatory for this company bank account, does it make any difference ??

Customer:

What about if she had not told the bank that she had resigned as a Director at the time of closing the account

Alex Watts : The fact she is sole signatory makes no difference.
Alex Watts : She is no longer a Director. She has no say in how the company is run.
Alex Watts : If she did not tell the bank, then there is no claim against the bank.
Alex Watts : But she can not take any step in running the company if she resigns.
Alex Watts : Can I clarify anything else for you?
Customer:

Alex , thank you, ***** ***** wonderful.

Customer:

Yes I have a very important question for tomorrow as it is late now .

Customer:

Many thanks and have a good night

Customer:

Kindest regards

Customer:

Dom

Customer:

Dear Alex , I cannot thank you enough , I will have another question tomorrow

Customer:

Kindest regards

Customer:

Dom

Alex Watts : Yes of course. Night.
Alex Watts : If this answers your question on this topic might I invite you to Rate my answer.
Alex Watts : If the system want let you please do say.
Alex Watts : If you need more help on this topic please click reply.
Customer:

Dear Alex

Customer:

Good morning Alex ,Can you please tell me if what she has done is illegal bearing in mind that she has taken the money and what could be the penalty if found guilty many thanks

Alex Watts : Well that would be criminal law. It could be theft. However she is unlikely to go to prison for it.
Alex Watts : Does that clarify?
Customer:

Thanks Alex but there is no way that I would want the mother of my children to even have the risk to go to prison. This is the story

Customer:

I am 66 she is 49. In 2000 I bought a house 180 K with a deposit of 20 K. But I had 170 K credit cards debts I therefore transferred by deeds of trust the ownership of the house to her .I paid the mortgage until 2010 ( 18K x10 years = 180 K ) . In 2007 I went down on my luck by loosing my job. I therefore did a repayment plan with no interest with the credit card people for 20 years and they accepted because I had 2 boys of 2 years old . But in 2010 I won the lottery 600 K but I still had 135 K debts with my repayment plan at no interest I therefore transferred the 600 K to her private account to secure the education, retirement etc but did not pay Payplan as I had no interest .QUESTION is that criminal ??? . From the 600K the marital home mortgage was repaid ( 170 K ) another property was bought ( 180 K ) and the rest of the cash stayed for making interest in her account. On Xmas eve 2013 she served me with divorce .3 Court hearing to see my children still not finished, the first financial court hearing she claimed that the 600 K was a gift but the bank manager at the time confirmed in writing that " No " it was for security and she the bank manager was aware at that time about my Payplan. Now my ex wife is trying to get me for the non repayment of my payplan with potential criminal wrong doings witneesed by the bank manager which automatically will make her an accomplice.

Alex Watts :

I would suggest taking action against the bank. If she took money out then you could issue civil proceedings against her on behalf of the Company.

Alex Watts :

But it would be the company taking her to Court and not you

Alex Watts :

Does that clarify the position for you?

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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