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That's a good point. I have always had authority to use the bank account for the last 3 years, so I just paid myself and recorded the payments on a weekly commission statement on the pc. As I paid myself as soon as the company received the commission, I would assume this was paid to me as commission, as if it was a dividend, we would have to both agree this and pay equal amounts to each other wouldn't we?
The company has 8 self employed brokers. The company makes a profit from them, so you could say yes, that the profits from this side of the business can offset any clawbacks from my clients.
I am no longer at the company as I fell out with the director. I still have my 50% shareholding though. As such, he never sent me a termination letter, but he did cancel all of my agencies with the insurance companies. Since this time, my policies have cancelled and he is demanding the money. He also says that 12 months ago, I had in the region of 25k of policy cancellations that I didn't pay back and he is asking for this back too. The company profits offset this at that time.
No, we never agreed any settlement and I have always maintained that I am not liable for this.
If I was still there, I may have paid some money into the business's to support this debt or maybe not. That would have been my decision and just an injection of capital as a shareholder. A lot of the time, company profits would pay for any clawbacks. I assume that as the clawback figure is quite high, the company cannot afford to offset this. Where as. If it had been a lot smaller, it would.
The only proof he has given me is to show me the clawback statements from the insurance companies showing that particular named clients had cancelled. Therefore it is obvious that I was the one who set these up, however I don't believe I have a responsibility to pay them back. I have no shareholder agreement or contract to state otherwise. What is your advice so far?
You have been very useful in answering my questions. Thank you very much. We can close this discussion now.