How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

what is the law against company directors under a company voluntary

Resolved Question:

what is the law against company directors under a company voluntary arrangement and hiding further creditors?
I have a debt owed to me by said company and the company directors have persisted on telling me I will be paid but it seems that they do not want me as part of the CVA and would rather keep promising I will be paid, then recently one of the directors has personally bank transferred some money into my account as part payment
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this,
Alex Watts : Was the debt incurred prior to the CVA please?
Customer:

yes

Customer:

Hi Alex

Alex Watts : Ok. Did you make a formal claim when the Receiver dealt with the CVA?
Customer:

No I basically had an agreement for payment upon a certain timescale of a development and was not made aware of the CVA until I approached them for payment

Customer:

I feel they dont want me making a noise for some reason and this worries me

Customer:

I have phone messages aswell as emails whereby they acknowledge that they knew they had the debt with me but that they would rather keep it away from the CVA

Alex Watts : Ok, is it too late for you to submit the debt now?
Customer:

No its not to late but I would rather see them make payments personally on a monthly basis to me then know that should they stop the payments I have something I can approach the CVA or liquidator to advise that the directors acted irresponsibly

Customer:

I was just wanting to know what the law was around directors and their actions

Customer:

whilst in a CVA

Customer:

this is a hard one as I have received a payment but i do not know how long this will last

Customer:

so I was kind of thinking of a back up plan should i need it

Customer:

Hi Alex

Alex Watts : Ok when entering a CVA they should give full Dislcosure. That is disclosure of all debts.
Alex Watts : clearly in this case they are not.
Alex Watts : Not only is this dishonest, a breach of the companies act it is also likely to be a breach of the terms of their cva
Alex Watts : Therefore they have a duty of full and honest disclosure, which they are not doing
Alex Watts : The law says they must act in the best interest of their company and declare everything to the insolvency practioner.
Alex Watts : They have not do so. Therefore they are in breach
Alex Watts : You can contact the IP and let them know or continue to have payments direct
Alex Watts : Can I clairfy anything for you about this today please?
Ash and other Law Specialists are ready to help you