Business partner demands to be account signatory

Discussion in 'Ecommerce Forum' started by Chubbybear1, Mar 24, 2019.

  1. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,316 2,094
    Looking at it from what we are told

    The partner of the company wants to leave and has a personal debt caused by his previous action as a self trader

    The same person has threatened to freeze the account

    The same person wants to be brought out presumably to pay off his debts

    The company has presumably worked well with one person with access to the bank account

    All directors should have access to the bank statements but few companies have more than one or two people in control of the bank account

    What motive does the one person who is locked out have to need access now

    The courts may force the issue but that would take time and not i would guess guaranteed in this instance

    As a Shareholder he can request a independent audit if he thinks there is something wrong with the accounts
     
    Posted: Mar 25, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #21
  2. deaytch

    deaytch UKBF Regular Free Member

    112 17
    As Chris said above. However, I feel that you have a personal vendetta against said partner. Why go in to business with someone like this?
     
    Posted: Mar 25, 2019 By: deaytch Member since: May 15, 2018
    #22
  3. petros3

    petros3 UKBF Newcomer Free Member

    5 0
    The very idea of denying the owner of 50% of the shares access to the company bank account is bizarre. It is not as if he can legally syphon off money from the account.
     
    Posted: Mar 29, 2019 By: petros3 Member since: Jan 12, 2012
    #23
  4. Newchodge

    Newchodge UKBF Big Shot Free Member

    12,059 3,121
    I assume you mean denying a co-director, a shareholder has no right to access the company bank account.
     
    Posted: Mar 29, 2019 By: Newchodge Member since: Nov 8, 2012
    #24
  5. Mr D

    Mr D UKBF Legend Free Member

    14,866 1,622
    I'd hope any shareholder gets denied access to the bank account. Though from posts on here over the years not every company operates that way.
     
    Posted: Mar 29, 2019 By: Mr D Member since: Feb 12, 2017
    #25
  6. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,316 2,094
    There would be nothing to stop him taking out a large loan from the account, and assuming it does not actually damage the company, but enough to restrict growth, which may not be easy to prove, the loan could be for a long time
     
    Posted: Mar 29, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #26
  7. nelioneil

    nelioneil UKBF Enthusiast Full Member

    607 84
    That is true but no different to any other company. The problem is the director should have been given access at the start and that director could argue that they cannot fulfil some of their duties as a director, due to lack of some accounting records and balances.
     
    Posted: Mar 29, 2019 By: nelioneil Member since: Jan 22, 2013
    #27
  8. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    10,316 2,094
    That's rubbish, you don't need to be a signature on the account, to have all the financial records which is your right anyway as a director, it's two seperate things, few directors of companies have access to actually make payments probably the MD and financial director others just have access to the account data and monthly accounts or day to day accounts
     
    Posted: Mar 29, 2019 By: Chris Ashdown Member since: Dec 7, 2003
    #28