Company closing with money outstanding to me as a creditor

Discussion in 'Legal' started by Merko, Mar 1, 2018.

  1. Merko

    Merko UKBF Newcomer Free Member

    8 0
    I was a director of this company but resigned in Feb, 17, due to the other director withholding information from me whilst in i was in a very vulnerable position. To give you abit of background information I was in hospital due to a high risk pregnancy which was very stressful, during this time the other director changed all passwords to my emails, advised staff not to talk to me, withheld accountant information etc. To protect myself i resigned as financial decisions were being made without my acknowledgment. And because i had a pre-term baby, i was not in the best place emotionally to deal with everything that was happening.

    When i resigned the company still owed me 9k in unpaid Director wages.

    A meeting was held in June, 17 where i was advised that the company will have to cease trading because it is insolvent but the current director would be making re-payments to myself and other creditors so that it could close “clean”.

    To date i have been paid back £2500, but the rest is outstanding.
    I recently recieved a letter from the company accountant to say that the company is closing with money outstanding to be paid to me.

    The current director has started a new company where she has retained all the clients and employees from the previous company, however has changed the description of the company.

    What are my rights? Do i have any? I was also a minority shareholder owning 20% of the company.

    I know i went into thid very niave and with not a business background.
     
    Posted: Mar 1, 2018 By: Merko Member since: Mar 25, 2017
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    10,599 1,110
    Sorry, the company is closing and you will be paid outstanding amount owed? Or its closing and still owes you money?
     
    Posted: Mar 1, 2018 By: Mr D Member since: Feb 12, 2017
    #2
  3. Merko

    Merko UKBF Newcomer Free Member

    8 0
    The company will be closed still owing me money.

    I forgot to add that the accountant has said that all other creditors have been paid, mainly hmrc and the bank.
     
    Posted: Mar 1, 2018 By: Merko Member since: Mar 25, 2017
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,457 297
    Other than trying to resolve this with the Company your only options are to consider recovery proceedings.

    Given it seems the assets may have been transferred the only option remaining other than CCJ etc and bailiffs may be Liquidation.

    The Liquidator will then investigate what happened and take any necessary recovery proceedings against the Director or the Newco if any antecedent transactions have occurred but it will cost you more money to Liquidate - £2-£3k and a risk you might not be repaid.

    How is the debt due to you made up? If wages/notice/redundancy holiday arrears then you could recover some/all of it from the Insolvency services if the Company enters formal Liquidation.
     
    Posted: Mar 6, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #4
  5. Merko

    Merko UKBF Newcomer Free Member

    8 0
    Hi,

    It is made up of my unpaid wages. If the company goes into liquidation is the cost due from the company? Or myself and other shareholders?

    Thank you for replying. I was wondering if i should seek legal help.
     
    Posted: Mar 7, 2018 By: Merko Member since: Mar 25, 2017
    #5
  6. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,457 297
    If the Company is insolvent the Directors should be taking insolvency advice and potentially liquidating it.

    On the basis they don't you could petition as a creditor to put the Company into Liquidation through the Court but you will have to pay for it. You will only get your petition costs back if there are asset recoveries.

    However you may then be able to claim the wages back from the government so could end up being better off.

    https://www.gov.uk/claim-redundancy

    The threat of liquidating might prompt the Directors to do something about your debt if they wish to avoid being forced to cease trading and be liquidated.
     
    Posted: Mar 7, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #6
  7. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    2,457 297
    If there are other creditors you could issue a joint petition and split the costs between you.

    You may want to get a specialist insolvency solicitor to help you.

    I can recommend someone if you DM me.
     
    Posted: Mar 7, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #7