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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 32177
Experience:  Over 5 years in practice
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If i resign under constructive dismissal whilst their is a

Customer Question

if i resign under constructive dismissal whilst their is a chance that the company may become insolvent, will i be breaching my director duties under the insolvency rules ?
Submitted: 1 year ago.
Category: Law
Ben Jones
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

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Expert:  Ben Jones replied 1 year ago.

Please can you provide some background information on the situation? Please can you also tell me how long you have been employed there for?

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Customer: replied 1 year ago.
28 years employment . Director since 2008
Expert:  Ben Jones replied 1 year ago.

Hi there. Thank you for your request for a phone call. I am unable to talk at the moment but I will review the relevant information and laws and get back to you as soon as I can. Please do not respond to this message as it will just push your question to the back of the queue and you may experience unnecessary delays. Thank you

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Customer: replied 1 year ago.
still there?
Expert:  Ben Jones replied 1 year ago.

Hi there. Yes I am still here. Please do also provide some background information too and I will then get back to you at the earliest opportunity. Thank you

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Customer: replied 1 year ago.
yep... ok.. on 9th August I heard that the company may not be able to make its september payroll duties
At that point myself and a colleague director requested to resign as Directors to the CEO by formal letter
Customer: replied 1 year ago.
the company then offered me a settlement agreement for my employment to end 31 August on the proviso that i rescind the resignation and that they would inform companies house of these resignation around 5th August. I accepted these terms (email trail saved). On 19 August a settlement agreent was e-mailed to me and the same day I had a lawyer look over it and approve it
Customer: replied 1 year ago.
on the 22 August - only 1 working day later the CEO informed me that the company would not pay the settlement agreement without stating reasons or that anything fundamental had changed between offer and refusal
Customer: replied 1 year ago.
he had effectively bought time by spinning out this timescale in my opinion
Customer: replied 1 year ago.
meanwhile , although the company is not currently trading in insolvency, I had a 16 page director duties pdf forwarded to me remind me what i should and should not do in order to act appropriately under the circumstances of becoming aware that the company may become insolvent.
Customer: replied 1 year ago.
I feel that under the circumstances of breach and trust of confidence regarding the behaviour of the CEO with regard to the Settlement agreement I have a valid case for constructive
Customer: replied 1 year ago.
However... I fear that filing a resignation under the current circumstances may breach my director duties which state that I could be liable for supplier debts (my role as operations director) has nothing to do with supplier debts.
Customer: replied 1 year ago.
I am not bothered about reaching agreement under constructive dismissal because I believe the company will be insolvent before any conclusion has had chance to materialize. However I wish to resign and leave without pay with immediate effect.
please advise
Customer: replied 1 year ago.
can you confirm please that you are still working on this ?
Customer: replied 1 year ago.
please do not pursue this any longer I needed the advice for 1st thing Friday and will not be in no to collect the advice. Please do not charge my debit cardThanks
Mike
Expert:  Ben Jones replied 1 year ago.

Hi ok sorry I was going to reply this evening but if you no longer need a response I will close this.

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