Recovery of Company doc's and stock

[mikecollins]

Can anyone help regarding the process for forcing an ex partner to hand over company files, accounts and stock without delay. Would a legal document need to be produced? Also has anyone got any advice regarding the neccessary legal steps that should/ought to be taken to protect the Company and existing directors etc from any claims from the ex partner/director.

[Kent Accountant]

You're probably talking about very expensive litigation in the Companies Court. You need to speak to a good commercial lawyer

[Antonia @limeone.com]

An application for a specific issue order can be made via the county court but you should take specific advice on the merits of such an application in your particular circumstances to avoid costs orders being made against you or your company. Without knowing more about the specific claims considered against the existing directors by the ex director it would be very difficult to advise on that aspect of your posting.

[mahutchinson]

It's difficult to say much without knowing the terms on which the director left but it's usual to draw a line under these things either by the terms of the original contract of employment or in a compromise agreement if leaving by mutual consent. Any documents of the company belong to that legal entity of course so to wilfully keep/take them is theft.

[i.m.]

A former director remains under his fiduciary duty to the company but you need to consider your own duties as well. Expensive litigation may not be in the best interests of the company (indeed it is unlikely to be) so negotiation is to be preferred. Getting the stock back should be relatively easy because if you can show a proprietary claim (ie a fixed and certain claim over property) then you can write a pretty plain and frightening letter to the former director who will be under personal liability if he causes the company loss. When you say accounts, I was unsure as to whether you meant physical financial accounts or lists of prospects/customers but, again, a correctly worded letter should deal with that. It is unclear as to whether you are talking limited company as against a formal/informal partnership - it does make a big difference to what I have said. You also need to consider value - dont go near a lawyer and go into litigation unless the amount at stake is top 5/6 figures.

Best

BR

[mikecollins]

A former director remains under his fiduciary duty to the company but you need to consider your own duties as well. Expensive litigation may not be in the best interests of the company (indeed it is unlikely to be) so negotiation is to be preferred. Getting the stock back should be relatively easy because if you can show a proprietary claim (ie a fixed and certain claim over property) then you can write a pretty plain and frightening letter to the former director who will be under personal liability if he causes the company loss. When you say accounts, I was unsure as to whether you meant physical financial accounts or lists of prospects/customers but, again, a correctly worded letter should deal with that. It is unclear as to whether you are talking limited company as against a formal/informal partnership - it does make a big difference to what I have said. You also need to consider value - dont go near a lawyer and go into litigation unless the amount at stake is top 5/6 figures.

Best

BR

Thank you BR, the company is ltd and regards accounts it is the historical and current company accounts and not customers data etc I am after. I am currently expecting a Companies House penalty for late filing and so I am in a difficult position regards the filing of the accounts. My ex partner was responsible for the accounts whilst I dealt with technical and operational concerns. He has the data, receipts etc etc. Regards the stock, he holds certain items of stock and other equipment including, business computors, printers test equipment which will have a value. The overall value of these items will not be in the 5/6 figure region so expensive litigation is not the way forward. A suitable frightening letter seems a way forward and any recommendations for content would be appreciated. Mike