Disputes between Directors

[Paul1959]

I am One of 5 Directors of a Small Company set-up some years ago.
One of the Directors is a Chartered Accountant and He Prepares the Accounts etc.. sent to Companies House.

I have Suspicions as to how the Company is being run and have Repeatedly asked Him for Copies of the Company Bank Account Statements and Relavent Invoices/Bills etc..

He Constantly Refuses to allow me to view the Bank Statements and as I am not the Account Signatory the Bank, although sympethetic, cannot allow me Access to the Account.

I have not seen any Bank Statements since the Company was set-up.

Is there any Legal Pressure I can use on this Chartered Accountant ?

Many Thanks,
Regards,

 

[cjd]

If you are a director of a ltd company in the legal sense ie registered with Companies House, you have a right to ask for anything you like because you are liable in law for the actions of your company.

But there must be a reason why you are asking and why he is refusing. You would do better to talk to the other directors and get them on your side. Otherwise you need to put it in writing to the Chairman or CEO and have call board meeting if you really have to.

 

[Paul1959]

Thank you for your Reply.
The Company is Registered and is a Small Management Company for Flats.
One Director does not take any interest in how the Company is run, and the other Two and the Chartered Accountant seem to be running it ' for themselves '
All my requests to any of these Three Directors is Ignored

 

[SLF]

Tell them you will contact Companies House and HMRC with your concerns as you feel you are not able to legally enforce your directors duties and have concerns there could be something wrong. Seems you don't have anything to lose from what you say as they have squeezed you out anyway.

 

[Paul1959]

Companies House are not interested as it's a Dispute between Directors, and, as I understand, my Rights as a Director are no longer supported by any Law.

 

[mahutchinson]

I am constantly amazed at these situations, however many I come across on here. You have as much right to see the bank statements as any other director but it's a bit strange having a director who isn't on the bank mandate although not relevant to your viewing them. What to do about it is outside my area - probably LimeOne can help ?

 

[Chance Hunter Solicitors]

Not only do you have a right to see what the true financial position of the company is, but, arguably, you have a duty to discover what the true financial position is so that you can act in the best interest of the company (which you are are required to do).

 

[Paul1959]

Thank you All for your Input.
How can I Progress with this Problem using ' Legal Options '

Regards,

 

[ald1]

You would have several options on the legal front including commencing specific proceedings to obtain an order that the bank statements are provided to you. It's just a process of determining which route will get you the result in the quickest and cheapest way. When I have dealt with these issues in the past, proceedings have rarely been required once a solicitors letter has been sent. If proceedings are required, providing the letters sent beforehand are up to scratch, you would be in a good position to ask for your legal costs as well.

 

[mahutchinson]

Not only do you have a right to see what the true financial position of the company is, but, arguably, you have a duty to discover what the true financial position is so that you can act in the best interest of the company (which you are are required to do).

Don't even think it's arguable - almost certainly an obligation which the other directors are interfering with.

 

[Zeno]

I would say the simplest solution may just be to either report him or threaten to report him to the Institute of Chartered Accountants. They may decide it is nothing to do with them however he would appear to be doing this is some sort of a professional capacity and will take any claim seriously.

 

[S Thatcher]

Another alternative, if you are owed money by the company and there is deadlock, is to threaten that you will seek, as a creditor to have an admoinistrator appointed over the company.
You probably won't do it as it may be expensive for the company, but frankly what is going on behind the scenes that you don't know about.
I would be seriously worried about what was happening and how this would affect me legally if the company was actualy insolvent as a result of actions that may be being taken, or have been taken by the active directors.
If you wish I'll be happy to talk to you.