Director Loan Not Recorded At Company House Need Help

Discussion in 'Accounts & Finance' started by MITSEY0, Jan 2, 2011.

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  1. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    Hi i am new to the forum and i have many questions about my horrid situation.
    I gave a friend a loan into his company i became a director and was supposed to get a wage for the first year and dividends. After a few years i would be fully paid with a little extra to boot.
    he remained 100% shareholder i put £50,000 in and was assured companies house was informed and everything was in order.
    I had no reason to doubt a friend. I must tell you at this point i never got anything in writing (i know how stupid was that!!!)
    what actually happened is i put my money in i did recieve a wage for 7 months and then the company hit hard times. i got no further payment and the company got wound up by the vat man. i wrote to the liquidator many times and they did not acknowledge my loan as it was not registered with companies house. they also never informed me of any meetings or dates they infact kept me in the dark and never wrote one letter to me. now even as a director surely they have to inform me of what is going on (have they acted correctly?).
    so here i am with a great fat nothing and my so called friend will not speak to me i have been totally ripped off is there anything i can do ?
    Please help
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #1
  2. OldWelshGuy

    OldWelshGuy UKBF Legend Staff Member

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    if he did not put it through the company then maybe you have grounds to treat it as a personal loan and chase him personally via the courts.
     
    Posted: Jan 2, 2011 By: OldWelshGuy Member since: Jun 12, 2008
    #2
  3. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

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    I wonder if the terminology here is a bit vague, and if "registered at Companies House" actually refers to the registration of a charge or debenture - in other words a secured loan. Given that there's nothing in writing, it's almost certainly an unsecured loan, which ranks way down the order in a winding up.

    On the other hand the holder of such a loan is a creditor of the company and entitled to be kept informed of the progress of the liquidation, including a statement of affairs and progress reports.

    The OP needs to clarify exactly what the situation is, but if it wasn't secured then it's probably lost.
     
    Posted: Jan 2, 2011 By: David Griffiths Member since: Jun 21, 2008
    #3
  4. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    The money was transfered from my bank account into the company bank account and i was supposed to be registered as a mortagee at that time but my friend it seems never registered it.
    All he did was register me as a director.
    so am i to assume then i have lost this money?
    and what of the liquidators is there anything i can do about them as it seems they have been negligent?
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
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  5. KM-Tiger

    KM-Tiger UKBF Legend Full Member - Verified Business

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    But I think it would be normal for the liquidator to require proof of the debt?

    MITSEYO: Do you have anything in writing about this loan? And how did you expect to receive dividends if you were not a shareholder?
     
    Posted: Jan 2, 2011 By: KM-Tiger Member since: Aug 10, 2003
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  6. OldWelshGuy

    OldWelshGuy UKBF Legend Staff Member

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    mortgagee on what? was there property involved then?
    Transfer of the money into the business account would be enough to register the possibility of a loan and from there it would be investigations before winding up.

    With respect, you have allowed all this to go ahead and are now asking for advice post fact :(
     
    Posted: Jan 2, 2011 By: OldWelshGuy Member since: Jun 12, 2008
    #6
  7. tony84

    tony84 UKBF Big Shot Free Member

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    I wouldnt lend anyone £50k without a solicitor being party to it. Even my mum and dad, as i would want to ensure should anything happen to them i get my money back.

    I would presume for that kind of money a solicitor or someone was used for some type of paperwork?
    Any money a ltd company or llp owes in effect dies with the company (unless there are personal guarentees associated with the loan) Thats one of the benefits of a ltd company.

    If you used a solicitor i would consult them.
     
    Posted: Jan 2, 2011 By: tony84 Member since: Apr 14, 2008
    #7
  8. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    i dont have anything in writing all i can prove is that the money left my account and the account name and number where it was paid into
    i did send a copy of my bank statement to the liquidator

    also i did not know i could not receive dividends it seems i have been led up the garden path more than i thought.
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #8
  9. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    i wish i had known about u guys when this was all happening

    im as confused as you my head is in bits

    so the question is why was there not an investigation when i sent my bank statement to the liquidator??
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #9
  10. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    no solicitor was used i trusted 110% the man i had worked for and knew on a personal level for over 15 years i am a very trusting person but i realise what a huge mistake i have made here there is no one on this planet i would trust with anything ever again believe me.
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #10
  11. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    i think in a nutshell this is what im saying here

    i have been screaming at the liquidator long before the company was wound up that here i am i have given the company in question a loan and i want my money back.
    they ignored me and the company was wound up by the vat man
    so what is my next step?
    do i walk away and put it down to experience
    or do i persue the liquidator for not even aknowledging i was there
    or do i go see the vat man or what i dont really know what i can do!!
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #11
  12. OldWelshGuy

    OldWelshGuy UKBF Legend Staff Member

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    you need to get legal advice. If the case has been closed you need to speak to the liquidator/official receiveer whoever dealt with it. But your solicitor will deal with this. You might have a case for some sort of negligence claim. but if there was no money then your loss would be total anyhow.

    Possible pain and trauma claim? legal advice is what you need. also ask about the potnetial for it being a personal loan to this guy then go after him personally. He will be unable to claim it was a company loan if he has not accounted for it.
     
    Posted: Jan 2, 2011 By: OldWelshGuy Member since: Jun 12, 2008
    #12
  13. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    i was waiting for a reply from the liquidator all the while they were watching the vat man wind up the company i never got one single letter from them.
    there was no property involved mortgagee was a term my partner used when the transaction of money was happening.
     
    Posted: Jan 2, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #13
  14. elainec100@cheapaccounting

    [email protected] UKBF Newcomer Full Member

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    Did you write to the liquidator and provide evidence of being a creditor?
     
    Posted: Jan 3, 2011 By: [email protected] Member since: Nov 4, 2005
    #14
  15. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

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    I guess there was no money in the company to pay anyone, regardless of your loan either being accepted or not by the Liquidator.

    He could have looked into your claim but with no money what could he do

    I would suggest seeking a solicitor for advice to sue the ex friend
     
    Posted: Jan 3, 2011 By: Chris Ashdown Member since: Dec 7, 2003
    #15
  16. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    i had my accountant write to the liquidator and he included a copy of my bank statement showing the transfer of funds and even he did not get a reply
     
    Posted: Jan 3, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #16
  17. Atilla

    Atilla UKBF Ace Free Member

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    Is this 'friend' now feeding through a straw?
     
    Posted: Jan 3, 2011 By: Atilla Member since: Aug 25, 2008
    #17
  18. MITSEY0

    MITSEY0 UKBF Newcomer Free Member

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    hi atilla
    i really would like to say yes but im just not the type to get revenge i just want justice this has put me and my family on a knife edge so any help to get a resolve would be appreciated..
     
    Posted: Jan 3, 2011 By: MITSEY0 Member since: Dec 30, 2010
    #18
  19. Bob

    Bob UKBF Big Shot Free Member

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    The liquidator should have filed a copy of a statement of affairs at Companies House setting out details of known assets and liabilities. You can download a copy yourself from the WebCheck service on Companies House website or get your accountant to obtain a copy. It only costs £1. You should then be able to see if they have recorded your loan and whether there are, in any case, any assets to make it worth pursuing the further,

    If the liquidator fails to respond, complain to his/her professional body.
     
    Posted: Jan 3, 2011 By: Bob Member since: Jul 24, 2009
    #19
  20. Tom McClelland

    Tom McClelland UKBF Ace Full Member

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    It seems that you lent the money to the company as an unsecured loan (in the absence of any loan guarantee document in your possession this is a reasonable conclusion to draw). Since the company was liquidated it is also reasonable to assume that due to unprofitable trading it lacked any cash to pay off its debts. I don't know what evidence you have of negligence on the part of the liquidators but they cannot conjure money from nowhere to pay you back, they can only pay you back out of company funds after preferential creditors have been paid, and the normal situation when a company is liquidated is that there is little or no money left for unsecured creditors after the preferential creditors (eg HMRC and liquidation fees) have been paid.

    You can make as much fuss as you like, but unless you enjoy making a fuss for its own sake there is likely to be little purpose in doing so, since your money has gone and limited liability means that the debts died with the company.

    As others have suggested it may be worth paying Companies House £1 each for the various reports filed relating to the company, but the chance of you discovering anything in these that gives you even a slim chance of recovering any of your money is small.
     
    Posted: Jan 4, 2011 By: Tom McClelland Member since: Feb 10, 2008
    #20
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