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 Jo C. Your Own Question
Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31300
Experience:  Over 5 years in practice
Type Your Law Question Here...
Jo C. is online now

If i resign under constructive dismissal whilst their is a

Customer Question

if i resign under constructive dismissal whilst their is a chance that the company may become insolvent, will i be breaching my director duties under the insolvency rules ?
Submitted: 12 months ago.
Category: Law
Expert:  Ben Jones replied 12 months ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 12 months ago.

Please can you provide some background information on the situation? Please can you also tell me how long you have been employed there for?

Customer: replied 12 months ago.
28 years employment . Director since 2008
Expert:  Ben Jones replied 12 months ago.

Hi there. Thank you for your request for a phone call. I am unable to talk at the moment but I will review the relevant information and laws and get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

Customer: replied 12 months ago.
still there?
Expert:  Ben Jones replied 12 months ago.

Hi there. Yes I am still here. Please do also provide some background information too and I will then get back to you at the earliest opportunity. Thank you

Customer: replied 12 months ago.
yep... ok.. on 9th August I heard that the company may not be able to make its september payroll duties
At that point myself and a colleague director requested to resign as Directors to the CEO by formal letter
Customer: replied 12 months ago.
the company then offered me a settlement agreement for my employment to end 31 August on the proviso that i rescind the resignation and that they would inform companies house of these resignation around 5th August. I accepted these terms (email trail saved). On 19 August a settlement agreent was e-mailed to me and the same day I had a lawyer look over it and approve it
Customer: replied 12 months ago.
on the 22 August - only 1 working day later the CEO informed me that the company would not pay the settlement agreement without stating reasons or that anything fundamental had changed between offer and refusal
Customer: replied 12 months ago.
he had effectively bought time by spinning out this timescale in my opinion
Customer: replied 12 months ago.
meanwhile , although the company is not currently trading in insolvency, I had a 16 page director duties pdf forwarded to me remind me what i should and should not do in order to act appropriately under the circumstances of becoming aware that the company may become insolvent.
Customer: replied 12 months ago.
I feel that under the circumstances of breach and trust of confidence regarding the behaviour of the CEO with regard to the Settlement agreement I have a valid case for constructive
Customer: replied 12 months ago.
However... I fear that filing a resignation under the current circumstances may breach my director duties which state that I could be liable for supplier debts (my role as operations director) has nothing to do with supplier debts.
Customer: replied 12 months ago.
I am not bothered about reaching agreement under constructive dismissal because I believe the company will be insolvent before any conclusion has had chance to materialize. However I wish to resign and leave without pay with immediate effect.
please advise
Customer: replied 12 months ago.
can you confirm please that you are still working on this ?
Customer: replied 12 months ago.
please do not pursue this any longer I needed the advice for 1st thing Friday and will not be in no to collect the advice. Please do not charge my debit cardThanks
Expert:  Ben Jones replied 12 months ago.

Hi ok sorry I was going to reply this evening but if you no longer need a response I will close this.

Related Law Questions