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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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I worked for a company and within my contract it did not stipulate

Resolved Question:

I worked for a company and within my contract it did not stipulate having any involvement in another business, the business was supplying labour, we had to find the best companies who were hungry to supply at good prices and normally we used 1 man operations to facilitate services for us, we helped a girl who wanted to leave her employment as a recruitment advisor and start her own business, I helped her by setting up a business and I was put down as a shareholder, since the company started I have not had any monies at all and her business has lost money over the past 2 years, the company I worked for, has now found out that I was a shareholder, and threatening me with Criminal prosecution, stating that I had benefited from the company, I can prove without doubt that no monies were received from this company at all.
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is ***** ***** I will assist you.

I am happy to help you with this, I am company law expert. Can you tell me do you have a specific question?

Are your employer alleging you have committed fraud by awarding supply contracts to a company you have ownership of?

Kind regards

AJ
Customer: replied 3 years ago.

Hi AJ


 


It came about yesterday as an unpaid debt by my former employer has not been paid, and has resulted in it going to a small claims court, here at the court, they were asked for there defence, and they only came up with they may look at a counter claim,and criminal convictions and that we have benefited from this company. The accounts which have been prepared by an accountant clearly shows that this company albeit we are shareholders we are not a director of the company actually made losses for the 2 consecutive years, and clearly states no shareholder funds being paid.

Expert:  Alex J. replied 3 years ago.
Hi,


Thank you.

So are you employers saying that you have been awarding contracts to a company you owned?

What crime are they alleging?

Did you get Judgment?

Kind regards

AJ
Customer: replied 3 years ago.

The employer is saying we sourced the resource and then put it through the company, at first they tried to say I carried out the works, but we proved that it was sourced through an invoice, The Director and only Director of the business which I was a shareholder was a recruitment expert and we gave the enquiry to the company and they sourced the tradesmen we required to facilitate projects at the going market rate for either a plumber or joiner etc, as they had made redundant all the trades which meant we had to start using multiple resource providers.and we used others a lot more than this company.


 


The crime they are alleging is that we made monies of the back of this.


 


The court has said that a judgement is against them at the moment and they have to come up with a defence only on the invoices,but said it is clear they have to pay the invoices,we are only pre-empting what they might counter with after them saying a possible counter claim and criminal action.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

The point is they do not have a counter claim against your company.

They only have a claim against you personally. They are alleging that did not disclose what is effectively a conflict of interest and made profit from it - as you have said this is not the case. Had you still been employed I have no doubt your conduct would have probably seen your contract with the company terminated, simply because you did not disclose the potential conflict and personal interest. However if your former employer needed the service anyway and it was charged at going market rate, then I cannot see how you will face any form of criminal claim.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Thanks AJ


 


Appreciated, the company in question carry out a lot of unethical business practices, and are capable of anything, so just wanted to put my mind at rest.


 


It seems that they just do not want to pay us, and using threat tactics with legal actions.


 


Appreciate your help.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

No problem. I think if possible you should try and have someone other yourself correspond with this. If they have some underlying issue with you personally that might be less of an issue if you have a colleague (or solicitor) that is corresponding with them and attending the court hearings?

Kind regards

AJ
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