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JimLawyer
JimLawyer, Solicitor
Category: Law
Satisfied Customers: 9132
Experience:  Senior Associate Solicitor
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On behalf of a friend who owns a Ltd company some one

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On behalf of a friend who owns a Ltd company some one invested £75,000 in the company several years ago. The company never had any revenue but the money was spent. The person is now demanding the money back straight away and putting a friend under pressure to pay personally to get the money back.
JA: Where is the friend? It matters because laws vary by location.
Customer: Scotland but the company registered in Brighton
JA: What steps has the friend taken so far?
Customer: nothing but wants reassurance from a lawyer that the person can not claim personally from him
JA: Anything else you want the Lawyer to know before I connect you?
Customer: The money was provided personally to my friend for part shares in the company.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!

Hello, this is Jim and I’m a dual-qualified lawyer (UK & Republic of Ireland) happy to help you today.

The contract is with the limited company, not the director, unless the director signed a personal guarantee which then makes them personally liable for the loan. As a result, the person is not liable to repay the loan - the only caveat is that if they traded the company knowing it was insolvent, or they are guilty of negligent/fraudulent misrepresentation then they lose protection from the limited company status. Assuming none of the above apply and there is no signed personal guarantee (which is usually in the form of a deed) then no, there is no liability to repay it by the person/director.

I hope this helps? If I have answered the question would you kindly leave me a 5 star rating (at the top of your screen), the question will stay open and any follow up questions are welcomed.

Many thanks,

Jim

Customer: replied 12 days ago.
Thanks Jim,How can my friend engage in a call with you and the cost as I think he needs personal reassurance. Thank you.

Hi, I can't take a call i'm afraid but if you click the call request button it goes out to all experts so someone will be able to take a call.

In the meantime if you can let me know whether I have answered the question online, that would be appreciated

JimLawyer, Solicitor
Category: Law
Satisfied Customers: 9132
Experience: Senior Associate Solicitor
JimLawyer and 4 other Law Specialists are ready to help you