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Thank you for your question and welcome. My name is ***** ***** I will assist you. Please can you provide me with some further information? Kind regards AJ
Thank you. Is the demand only being made to you? Were the dividends declared and recorded and approved by your parents? Do you have access to the accounts and company books?
Thank you. Were the dividends ever paid while the company was insolvent? Or while you knew it was insolvent? Also do you have any money to repay anything to the OR?
I have to go offline briefly but will be back by 1.30pm. Kind regards AJ
Thank you. The way you can mitigate this is two fold:
(i) Prove that the company was viable and you did not have reasonable grounds to suspect it might go insolvent when the drawings where made;
(ii) Challange any sums that were take out more than twelves months before the date of the liquidation.In order to do this, you need the accounts, and you should write a report explaining why you are not liable to pay each payment - each time explaining that the company was trading and solvent when the dividends were drawn.
Have they just sent you a blank demand for £80k? When do you have to pay it by?
Thank you. Negative shareholder equity is means that the liabilities are greater than company assets. That does not immediately mean the company was insolvent. When did the company contemplate insolvency? That is what they will have to prove - you will be able to negotiate to that point. If you were still paying dividends when the company had no prospect of trading its way out of trouble, then those you are liable to repay. Kind regards AJ