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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3843
Experience:  Solicitors 2 years plus PQE
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A year ago I was asked by my brother to... A year ago I was

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A year ago I was asked by my brother to...
A year ago I was asked by my brother to become a co director of his company which I agreed to do in Sept/Oct of last year. The reason for this was he was being made personally bankrupt and additionally had been ordered by the sheriff's court to notrun any business or act as a 'person withspecial interest' for any business. I eventually got him to hand over bank acc details and access in March if this year and after trying to deal with the accounts (he had no accounts system in place) I discovered a discrepancy of 103k that had been used by him to pay for personal expenditure - holidays, hotels, cars, cash withdrawals, even a debt collection agency for personal council tax. He has also removed stock from the business to use in his house - fitted kitchen and 2 bathrooms and his home utilities amongst other things. I have also discovered that far from being appointed a director in autumn 2015 I was in fact appointed as a director when the company was formed and he had resigned as a director in January 15 less than 6 months after formation leaving me as the only director (although I didn't know I was) but continued to run the company as tho he was the sole director. The company was formed through an agent who is willing to state that the acted on my brother's instruction and had no confirmation from me. In addition there has been no paye or ni payments made since inception, not vat returns and no corporation tax paid. He has hidden letters from both the AIB regarding deductions from his wages toward his bankruptcy from me alongside letters from HMRC all addressed to me at the company's address. The company is not able to fulfil its outstanding orders and will have to close. I have put my own money into the company in the last few months in an effort to trade out of this mess but it's just not possible. The company had a turn over if 750k plus last year and because of him is insolvent and will I will have to put 8 people out of work whilst he had walked away and set up a new company doing the same thing - which according to his court order he can't do but like everything else he is doing anyway.
My questions are:If I was appointed a director without my knowledge am I actually a director even tho I have acknowledged being one since Oct last year.Are the things purchased by my brother through the company account classed as Theft from an employerAre these things covered under the proceeds of crime actHas he acted fraudulently by acting and telling everyone he was the sole director when in fact he was not a directorIs the missing money fraud or theftThe house he's living in is in his wife's name but has been renovated, maintained and fitted out with company property using company money for furniture etc - I have the bank statements proving this. Can I claim any part of the value of the propertyWho exactly do I report all this too? Is it a criminal matter for the police or woukdvir be a civil action.
He's ruined a profitable business, set me up from the beginning and put 9 staff out of work whilst continuing to live his life with no regard for the chaos he has caused
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Thank you for your patience,

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you.

(i) Companies House is just an administrative record - your appointment as a director will only commence from the dated you actually consented;

(ii) No technically it would not be theft if his intention was to repay it. He would be personally liable to repay if the company went into an insolvency procedure;

(iii) Possibly, but it is unlikely - this is more likely to be pursued by a liquidator than dealt with as a criminal matter;

(iv) Yes holding yourself out as a director when you know you cannot be appointed as one because of your bankruptcy is potentially fraud;

(v) yes it is possibly fraud or theft - the threshold for fraud is very high, so it is unlikely this would be pursued. Theft is a more likely charged

(vi) If the company went insolvent then it is possible the liquidator could pursue the house. That said, if you want to claim a charge on the house as security for money owed you would need either a court order or his and his wifes consent;

(v) I would and see an insolvency practitioner immediately. Taking advice from an insolvency professional is the best way to protect against claims of personal liability in an insolvency. This can even be used as a defense in court.

Kind regards


Alex J., Solicitor
Category: Law
Satisfied Customers: 3843
Experience: Solicitors 2 years plus PQE
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