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Michael Holly
Michael Holly, Solicitor
Category: Law
Satisfied Customers: 7072
Experience:  I have 20 years of experience as a solicitor in litigation and other areas
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I gave a friend my company as it had a few problems but

Customer Question

Hi,I gave a friend my company as it had a few problems but but was still very profitable I just didn't want the hassle anymore.His name and address was put on company's house as a director and mine was removed.since then I have had 2 of these problems asking for me to rectify the work that was done in the past.would I be in any way responsible for any of these problems including a ccj served at my property were the company is no longer registered ( the ccj was in the company name not mine) ?
Thank you
Submitted: 2 years ago.
Category: Law
Customer: replied 2 years ago.
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Customer: replied 2 years ago.
My phone number is ***** thank you
Customer: replied 2 years ago.
Also I had a credit account which he had taken over but they had been informed by company's house that I was no longer a director and that he was now the director, does he now take on this debt that is in the company's name? Thank you
Expert:  Michael Holly replied 2 years ago.
The answer is no.
If you simply transferred the company, then the assets and liabilities pass unless a specific agreement is signed making you responsible for anything that comes up from the time before the transfer. Since you did not sign such an agreement the existing company owner is responsible.
I hope this helps should there be any further points please reply I will be happy to respond.
Best wishes
Customer: replied 2 years ago.
Thank you Michael, does that also include the credit account I had in the company name ie once I'm of the register and he is on that debt is now his?Kind regardsMark
Expert:  Michael Holly replied 2 years ago.
Dear *****
If it is the company account then, presumably, you were exercising it in your capacity as a company director.
As stated in the absence of an agreement to the contrary the new directors take over the existing benefits and burdens.
The only time you may be in trouble is if a buyer is mislead/ significant debt hidden etc.
Best wishes