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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I set up a business in 2011 along with a co-founder. We were

Customer Question

I set up a business in 2011 along with a co-founder. We were both directors and equal shareholders. I subsequently resigned as a director in August 2013, however I retained my 50% shareholding. It now appears the business is in financial difficulty and may need to "close it's doors". Is there any chance I am financially liable?
Submitted: 4 years ago.
Category: Law
Expert:  Ash replied 4 years ago.

Alex Watts : Hello my name is Alex and I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Did you sign any personal guarantees please ?
JACUSTOMER-39003snv- :

Only on office rent which has since expired.

Alex Watts : In that case no, you will not be personally liable.
Alex Watts : You are only personally liable for any debts which are given a personal guarantee.
Alex Watts : Can I clarify anything for you about this today please?
JACUSTOMER-39003snv- :

So as a previous Director and current shareholder there should be no financial implications for me?

Alex Watts : Yes that is right.
Alex Watts : Does that help?
JACUSTOMER-39003snv- :

Thank you, yes.

Alex Watts : If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.Please bookmark my profile if you wish for future help: