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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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I am the only UK director of Plasta UK Ltd. 2 other

Resolved Question:

Hello, I am the only UK director of Plasta UK Ltd. 2 other directors are based in Lithuania.
We opened a business on 1/4/2016 and in June I suspected a fraudulent behaviour on their behalf. I took legal advice and the solicitor told me that as I was a non-equity director, I am in fact an employee in the eyes of the law and the 2 Lithuanian directors would just vote me out.
I had to sign a personal guarantee for the UK factory facility so the solicitor has told me to sort this out before resigning.
Today I have found out that a UK client owing the UK facility £100,000 has made a deal with the Lithuanians to pay this debt in € and avoid the UK debt that we have.
The company is therefore trading insolvent and as a UK director I have to resign now.
And as a result of that, do I need to stipulate it in my resignation letter as it will go to court or do I just resign and wait.
Submitted: 11 months ago.
Category: Law
Expert:  Ash replied 11 months ago.

Hello my name is ***** ***** I will help you with this.

Just to be clear you still have a PG. Are you asking if you are still liable for the PG?
Alex

Customer: replied 11 months ago.
Hi Alex, yes I still have a PG for the UK factoring facility but I need to resign today because we are trading insolvent from the news I've found out and I believe as a UK director I can no longer do my job.
Also, they're coming over on Monday to probably vote me out and put the company in liquidation and as the only UK director I would prefer to gamble to sort the PG out than have this black mark against my name for only being a director for 5 months.
I have told Barclays what's happening because they have funded against the debt and they are going back to me on Monday and probably suspend the facility anyway so I am confident the facility will be clear.
However, I don't want to be voted out and have my first directorship ended in liquidation when I raised my concerns over a month ago.
Do you think this is the right thing to do because I was told by someone else I can put the company into a voluntary liquidation myself and would this show better responsibility?
I've spent the day after hearing the news walking from solicitors to solicitors office but no one had the time at such short notice to advise me.
I would really appreciate your advice.
Thank you.
Expert:  Ash replied 11 months ago.

What is it you want to achieve?

Ash and other Law Specialists are ready to help you
Customer: replied 11 months ago.
I want the chance to carry on as a Director in a new company so I want to make sure I act responsibly because there will be liabilities to pay.
I have never resigned due to the actions of others and I wanted to know if I need to mention this as my main reason.
I don't want to as I would rather it be amicable to spread the debts but I also need to protect my future and leave off an important sentence which could show a lack of duties.
I am responsible for exposing the company to a large debt and would say together with the aftermath which does not include me in any decision making that I can no longer fulfill my duties.
I would offer to stay to sell the inventory.
Would this be acceptable?
Customer: replied 11 months ago.
8237;+44 7713 674766‬ is my number and I wound be happy to speak.
Thanks
Simon