Appointing and then resigning as director

[Jim101]

I wish to start a business Limited company. I have a CCJ in my name and have been bankrupt before

The problem is that no high street bank will open a bank account. I do not want to use these unregulated internet banks

Only option is to appoint my wife as director and shareholder and once the bank account is opened then take her off and appoint myself

The other issue is she may become bankrupt in the next few months.

I just want to know the risks involved and the potential pitfalls.

 

[Mr D]

Besides the risk that anyone appointed controls the business and the bank account?

No high street bank will open a limited company bank account? Or you cannot get a personal one and once you set the company up you worry the same will apply to the company?



The bank can close the account if they have a director change they are not happy to bank with. Have not had that myself but have known directors who have had it done.

 

[Jim101]

Thanks for the reply. Getting a personal bank isn't a problem but business bank account is impossible

I doubt the banks check who the directors are apart from a small sample I guess.

Do you mean you know of instances where the director on the bank records is different to that in companies house and they have closed the bank account ?

 

[KAC]

They will take up further references if you wish to change the signatories on the account

 

[Mr D]

Thanks for the reply. Getting a personal bank isn't a problem but business bank account is impossible

I doubt the banks check who the directors are apart from a small sample I guess.

Do you mean you know of instances where the director on the bank records is different to that in companies house and they have closed the bank account ?

No, a director resigned and a new director took over. The bank decided to close the account as the new director failed whatever.

 

[STDFR33]

The bank could close a personal account if used for used as it will be against their terms and conditions.

A personal bank account used for a limited company can also have unnecessary tax implications.

 

[Jim101]

They will take up further references if you wish to change the signatories on the account

I think the intention is not to change the signatories but the husband to use the wife login details etc

 

[Jim101]

@ Mr D

With the millions of business bank accounts I will be surprised how the banks can keep up with the changes of directors and then carry out a credit check on them and close the bank account

 

[Gordon - Commercial Finance]

What you are looking to do sounds rather fraudulent - probably don't want to do too much more public forum posting about it...

 

[Mr D]

@ Mr D

With the millions of business bank accounts I will be surprised how the banks can keep up with the changes of directors and then carry out a credit check on them and close the bank account

They don't need to keep up, the directors tend to tell them and provide the paperwork necessary.
When processing a change notified by the customer its going to be relatively easy to do things.

 

[Supercoach]

With the millions of business bank accounts I will be surprised how the banks can keep up with the changes of directors and then carry out a credit check on them and close the bank account

You are going to run foul of money laundering laws which are serious offenses.
The banks have to comply with these laws otherwise they are fined huge amounts of money and have a whole raft of checks to ensure that - not only directors - but also shareholders with substantial holdings are properly identified and vetted.
So, make your choice between breaking the law or using a personal bank account and self-employment although I can see why that is not an attractive option to you.