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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34108
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I am looking at a draft consent order from my ex-wife who

Resolved Question:

I am looking at a draft consent order from my ex-wife who was also a Director of the same limited company before she resigned. This has been added and I don't think it is fair that I should indemnify her for her 25 years as a Director of the company. Surely I am not in a position to make these promises for a Limited Company that is a different legal entity and I am an employee. I could resign myself and somebody else could take over, the company might be sold. Surely in law she is still liable for what she did during her time as a Director. This is what it says:
Undertakings in relation to the businesses
21. From the date of this order the respondent shall;
a. discharge and be responsible for all tax and other liabilities, costs and expenses in relation to MCSL and in any event he shall indemnify the applicant as to any such liability or claim.
b. indemnify the applicant in respect of any losses, claims, demands or other liabilities arising from her involvement in MCSL, or consequent upon her transfer of shares or cessation as an employee and director of the company.
Submitted: 10 months ago.
Category: Law
Expert:  Clare replied 10 months ago.

Thank you for your question

My name us Clare

I shall do my best to help you but I need some further information first

What is the nature of the company?

Customer: replied 10 months ago.
It is a computer software company please see http://www.mapsoft.com
Expert:  Clare replied 10 months ago.

What involvement dis your ex actually have?

Customer: replied 10 months ago.
She resigned in June 2014 and took all of her customers to a new company that she had started a couple of months before. She was responsible for about 1/4 to 1/3 of the companies annual turnover. She is a technical writer and bid writer and was largely responsible for working with the accountants.
Customer: replied 10 months ago.
heavily involved with the company on a day to day basis
Customer: replied 10 months ago.
She has a £27000 directors loan that I have agreed to write off providing that she pays the approx £4000 of national insurance contributions into PAYE to enable us to do that. It is this that she is mainly worried about, but I have said that this is a commercial matter and has no place in this agreement. However this is in another part of the contract already.
Expert:  Clare replied 10 months ago.

Ok

Are you acting for yourself?

Customer: replied 10 months ago.
Expert:  Clare replied 10 months ago.

It is not unreasonable that the issue is included in the Consent Order - in fact it is sensible in terms of ensuring that all matters are dealt with.

However the wording is not reasonable and the second part should have the words "arising from her involvement in MCSL " removed.

Please ask if you need further details

Clare and other Law Specialists are ready to help you