Accounts & Finance Brought to you by Start Up Loans
Dismiss Notice
Hey Guest, make sure to follow us on Twitter! Say hi and we'll be sure to follow back!

Company Director Resignation? Responsibilties

Discussion in 'Accounts & Finance' started by 786a, Sep 30, 2008.

  1. 786a

    786a UKBF Newcomer Free Member

    Posts: 2 Likes: 0

    I have a bit of a situation and was wondering if anyone could help, I went into business with a friend a few years back and set a company. We filed the first years accounts with a loss and our second years accounts are seriously overdue. They haven't been filed because we have fallen out with each other.

    Companies house has recently written to me advising that they will strike of the company if it isn't trading etc. I wrote back advising that the company was still required and we are in the process of sorting out our accounts.

    I had hoped that I could get my so called friend to finalise the accounts (as he has most of the docs and knows whats going on in the company, better than me). But unfortunately he doesn't want to know, we are in the process of selling the business, a retail shop (not the company).

    Companies house have written back to me to say if I don't file accounts by a certain date they will prosecute the director (there's only one in the company, me) and fine the company. Were do I stand if I resign? no one else will take my place as a director. Will the company be struck of ? can companies house still prosecute me personally after I have resigned?

    Thanks in advance
    Posted: Sep 30, 2008 By: 786a Member since: Sep 30, 2008
  2. From companies house:

    What happens if I do not submit accounts or annual returns to Companies House?

    As a director of a company Companies House can prosecute for not submitting these documents on time. This is a criminal offence and upon conviction the court can fine a director up to £5,000 for each offence. There is a separate, civil penalty imposed on the company for the late filing of accounts.

    If Companies House believes that the company is no longer carrying on business or in operation, we can, after writing to the company to check whether that is true, strike it off the register and dissolve it. If this happens all the assets of the company, including its bank account and property, generally become the property of the Crown. Once a company is dissolved you can only restore it to the register by means of a court order. For further details see our guidance, 'Strike-off, Dissolution and Restoration' or 'Strike-off, Dissolution and Restoration (Scotland)'.

    5. Do you really prosecute directors?

    Yes. On average we prosecute more than 1,600 directors each year for failing to deliver accounts and returns to Companies House on time. Persistent failure to deliver statutory documents on time may also lead to the court disqualifying a director from taking part in the management of a company for a specified period.

    here is the link for your to read more:
  3. Jenni384

    Jenni384 UKBF Big Shot Full Member

    Posts: 4,837 Likes: 1,536
    I'm sorry to hear of your situation but unfortunately it sounds like you are the one with the legal responsibility to sort this out.
    I suggest you get all of the work in progess from your 'friend' (he doesn't want to know, and so should be pleased to be rid of it) and pay an accountant to sort it out asap - the professional fees will be far less than the penalties if Co House decide to prosecute.
    If you can't get the info from him perhaps you could get copy bank statements direct from the bank as start.
    Either way, get professionally represented.

    Good luck.
    Posted: Oct 1, 2008 By: Jenni384 Member since: Oct 1, 2007