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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3772
Experience:  Solicitors 2 years plus PQE
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I made a loan to a company which I am told has now been

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I made a loan to a company which I am told has now been dissolved. Security was in way of a directors property. Proof of this is only in writing on company stationary and in an email. Does this security have any legal standing?
Submitted: 26 days ago.
Category: Law
Expert:  Alex J. replied 26 days ago.

Thank you for your question and welcome. My name is ***** ***** I will assist you. Was the charge registered at the Land Registry? Has the company gone into insolvent liquidation or has it just been dissolved? Kind regards AJ

Customer: replied 26 days ago.
No to your first question and I understand company has been dissolved, this from Companies House
Expert:  Alex J. replied 26 days ago.

Thank you. Can you send me the charge document? Is the director refusing to repay the loan? Has the director just taken the company assets and closed it down? Kind regards AJ

Customer: replied 26 days ago.
I can make no contact with the company and the only details of the charge are at the foot of each of the attached documents.
Regards ***** *****
Expert:  Alex J. replied 26 days ago.

Thank you. Did Ms Johnson sign this? Kind regards AJ

Customer: replied 26 days ago.
I have nothing to verify that
Expert:  Alex J. replied 26 days ago.

Thank you. I am afraid this wont be a valid charge or guarantee. Is the director denying the claim? Kind regards AJ

Customer: replied 26 days ago.
Having no contact with them I can only assume so
Expert:  Alex J. replied 26 days ago.

Thank you. It says that a charge will be held with a solicitor, so have you had any correspondence with the company advisors? Your only option at this stage would be to apply to have the company restored, then have it put into liquidation. You would then be able to potentially pursue the directors personally if they have misappropriated the company assets?

Customer: replied 26 days ago.
I could almost certainly say the company would have no assets, are the directors homes considered as such?
Expert:  Alex J. replied 26 days ago.

Thank you. Directors (and their assets) are only personally liable for company debts if they accept liability in writing or commit and offence under the Companies Act or Insolvency Act - they would have to trade the company knowing it to be insolvent. If you had anything with the directors signature on that may be a start. Is it possible that this was all fraud? Who approached you for the loan? Kind regards AJ

Customer: replied 26 days ago.
ckley who was my financial advisor at one point hence a certain confidence in the venture on my part, approached me for the loans but I'm almost certain it was not fraud, I think a genuine business venture was undertaken which looked promising but sadly failed, especially from my point of view!
Regards ***** *****
Expert:  Alex J. replied 26 days ago.

Thank you. Did your adviser have any disclaimers when she approached you? Did she try to ensure you obtained proper security?

Customer: replied 26 days ago.
The security arrangements were suggested by her and although I asked for but didn't receive any signed documents I must admit to taking her word for the charge
Expert:  Alex J. replied 26 days ago.

Hi, I think you would be best served pursuing your financial adviser. This is potentially negligent advice you have been given. Did she advise you of the risks of investing? Kind regards AJ

Customer: replied 26 days ago.
Not at all
Expert:  Alex J. replied 26 days ago.

Thank you. I think it would be worth (without making any accusations) having an initial conversation. Have her explain how she found the investment etc You could potentially have a claim under the Supply of Goods and Service Act 1982 s.13 failure to provide the service with reasonable care and skill - this could also be negligence.

I would be most grateful if you would take a moment to rate my answer. I am happy to continue this dialogue.

Kind regards AJ

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Customer: replied 26 days ago.
Thanks for all of that AJ but I think we can close the dialogue at this polnt and must put it down to a very painful experience.
Regards ***** *****