O
OldLad
- Original Poster
- #1
I am a Director of a Limited Companywith two other directors: one with no day -to-day involvement who acts as Co secretary, the other allegedly runs the business with me.
The company operates a franchise, in which I had 25 years practical experience as a manager when my co-director approached me to take over a run-down business 4 years ago. The business prospered for 2 years, then faltered as we took on a second failed franchise which led us to a whopping loss in year 3, with the knock-on effects on cash flow etc etc. Our agreement was that I would take care of all 'front end' operations: design, production, sales, invoicing, staffing: he would do sales & marketing, and run the admin side, which involves supplier invoice processing; dealing with leases;the bank;accountants and all statutory bodies: VAT HMRC etc.in other words, paying everyone.
To cut to the chase: whilst the business has maintained a modest 5-10% growth in the last 12 months, some fairly alarming stuff has come out of the woodwork, which all adds up to the fact that he simply hasn't kept on top of his responsibilities. When winding-up threats start to appear, I think it's time to look after my own interests, which I assume will start with my resignation as a Director of the company? I have been advised to simply let the company fold, and walk once it's happened, but I have spent 4 years building it to a sales level where we are at a 400% increase from the base we started with, and there are some good relationships with good solid customers which I am loathe to abandon: there is the possibility of working for a colleague, but we have to be mindful of the Franchisor's role in all this, what with restrictive covenants and the like!-although I have been told that, under recent European laws, it is illegal to prevent someone from earning a living????
My question is: in addition to submitting the Companies House form, should I write to the company detailing my concerns as to the way the company's financial affairs have been handled? In all our dealings with suppliers etc, it has always been accepted that he deals with the financial side, so it isn't as though I'm attempting to shift the blame for the dire state of affairs - I simply need to look out for myself and my family.
Apologies for the length of the post, but I felt the situation needed some background detail so anyone who feels like helping has as much info as I could...thanks in advance for any help or advice.
The company operates a franchise, in which I had 25 years practical experience as a manager when my co-director approached me to take over a run-down business 4 years ago. The business prospered for 2 years, then faltered as we took on a second failed franchise which led us to a whopping loss in year 3, with the knock-on effects on cash flow etc etc. Our agreement was that I would take care of all 'front end' operations: design, production, sales, invoicing, staffing: he would do sales & marketing, and run the admin side, which involves supplier invoice processing; dealing with leases;the bank;accountants and all statutory bodies: VAT HMRC etc.in other words, paying everyone.
To cut to the chase: whilst the business has maintained a modest 5-10% growth in the last 12 months, some fairly alarming stuff has come out of the woodwork, which all adds up to the fact that he simply hasn't kept on top of his responsibilities. When winding-up threats start to appear, I think it's time to look after my own interests, which I assume will start with my resignation as a Director of the company? I have been advised to simply let the company fold, and walk once it's happened, but I have spent 4 years building it to a sales level where we are at a 400% increase from the base we started with, and there are some good relationships with good solid customers which I am loathe to abandon: there is the possibility of working for a colleague, but we have to be mindful of the Franchisor's role in all this, what with restrictive covenants and the like!-although I have been told that, under recent European laws, it is illegal to prevent someone from earning a living????
My question is: in addition to submitting the Companies House form, should I write to the company detailing my concerns as to the way the company's financial affairs have been handled? In all our dealings with suppliers etc, it has always been accepted that he deals with the financial side, so it isn't as though I'm attempting to shift the blame for the dire state of affairs - I simply need to look out for myself and my family.
Apologies for the length of the post, but I felt the situation needed some background detail so anyone who feels like helping has as much info as I could...thanks in advance for any help or advice.
