We have written confirmation of the sale - sale of assets and consultancy.
We sold the company to him and changed the name as he was going to use the old name. Ie. we kept the same Companies House number and he received all assets and records
from his Ltd co., to our Ltd co.
#from his company account
I assumed WE sold HIM the business but the payments went from his co. acct. to our co. acct.
do I need to check the docs?
I can't find it on my pc atm - my wife has nipped to the shop and should be back in 15. she knows where to find it, I hope!
Ok understood. will wait confirmation that you're back
Alex, Having some problems finding the paperwork of the sale but here's the original situation... Our company Orpington Chiropractic Clinic Ltd was owned by us/my wife and she was the sole director. Motivation Ltd bought the business from OCC Ltd whose name was then changed to Fairfield Rentals Ltd at Companies House. Motivation then made the agreed monthly payments to Fairfield Rentals to pay name, assets, records and equipment of the business plus consultancy services. This continued until our bank closed the account and we asked that the monthly BACS payments be redirected to our personal account at the same bank and this was then when problems began. Without telling us of any problem he might have with such payments we only learned that the purchaser had any issue when the next payment was not received. We were then told that he had been advised (by his accountant) that it was "illegal" payments to be made into our personal account as that could be construed as money-laundering!! We tried but were not able to reactivate the old business account and other banks have told that to open a new sole trader business account will take up to a month - we are not in a position to hold on that long and it wouldn't surprise us if he still refused to pay as it wouldn't be in the name "Fairfield Rentals LTD"! Since then and despite numerous attempts by us to communicate, including with his accountant and between both ours and his accountant he personally has been extremely difficult to get in touch with and the situation remains completely unresolved. His answer is just "well I cannot make any payment into your personal account as it is illegal". No attempt at other resolution whatsoever.
Have found the original document of sale, signed by my wife and purchaser both as directors of their respective companies. Vendor and Purchaser listed as the companies, not as individuals. How should I forward an electronic copy to you?
Thank you very much. Hope you have had a thoroughly successful day!
I'll just wait until you come back to me - is that right? Cheers, Mark
I guess this is a problem when you fall foul of the legal niceties when the current situation could never reasonably have been foreseen (mutter, mutter, obscenities minutes!).
As he does not seem to be aware of this loophole, as it were, and as I don't believe minute he has any moral grounds paying other than this is a handy means of delaying money leaving his bank (and bearing in mind his argument solely stems from his accountant suggesting it might be illegal/money laundering to pay into an account other than the one we initially chose, which understandably happened happened to be an account with our business name), do you have any suggested courses of action that I might take?
What I'm getting at is that you have pointed out to me a legal oversight on our part which has only arisen subsequent to the decision by Companies House to close the company down (without discussion with us) and the bank subsequently closing the business account (also without any notice). Consequently, if we were to overlook this point have we any other legal angle to encourage him to pay up?
I don't believe I'm asking you advice, as you are acting on my behalf and not as an independent judge but merely to offer me any legal opinion as to why he should feel comfortable making payments into another account that I could present to counter his insistence in the illegality of doing so on the grounds of potential money-laundering and his view that he could be held liable in some way. I shall quote my earlier suggestion...
I have pointed out that this would be our responsibility (re. potential money-laundering) and on our heads alone. I have offered to send him a letter stating that we (as prev. owners of the business and the bank account) fully acknowledge payments made to our personal account are in place of previous payments made to the business account. I have even offered to supply him my tax reference so that he might write to HMIT regarding his concerns over money-laundering.
The sums we are talking about totals £1500 per month over about 28-9 months which may not be a huge amount in many business disputes but since my wife and I are both registered disabled (I'm in a wheelchair with MS and my wife has had 3 spinal surgeries and is on constant morphine medication) it is of crucial importance to us as we have no other means of generating income or savings. I have to implore you to please give me some ray of hope from all of this.
Many thanks, Mark
Do I assume you have read my reply of 21.35?
Sorry if I seem to keep going on, Alex, but can you answer the 2/3 questions in my previous reply. "Sorry its not better news.", does not seem to be much of an answer but more of a dismissal, which is why I have assumed you had not read it.
Thank you. I do understand though it grieves me sorely. One final question then... Might I have some point to make with Banking Ombudsman regarding the bank closing the account when payments were still regularly being made into the account?
I feel I know the answer - I'll have to ring them to ask as it's not a legal matter.
I promise that question about the letter is my last one!!
We may be getting out of sync., I fear.
The last question I referred to was regarding this matter.
I asked, would a letter from me (as suggested in my very first post) accepting any liability money-laundering, etc. absolve him of any liability. This seems quite key to his argument which may fall down if I can show he has no such liability.
And this IS my final question!
OK thanks anyway