Help plaese

[inneedofhelp]

I had to liqudate my business last year due to a large un-paid debt, as a result of the liquidation I was also declared bankrupt. My brother purchased some of the assets and the goodwill of the company and started trading using a name similar to that of my old company. He has just offered me a job, can I accept this offer as I will be employed by him and not have any involvment in the running of it. Any help would be appreciated. Also can anybody answer this question can a bankrupt be a sales person as technically you would be promoting a business am I right?

 

[tony84]

Your fine.
I think you can work for the company and be a shareholder, but you cant be a director.

My understanding is you can own or work for a company just not run it.

 

[inneedofhelp]

Many thanks for this, it is so un-clear what you can and can't do, I do not want to step outside the rules just want to start re-building my life and earn a living

 

[Big Pete]

I had to liqudate my business last year due to a large un-paid debt, as a result of the liquidation I was also declared bankrupt. My brother purchased some of the assets and the goodwill of the company and started trading using a name similar to that of my old company. He has just offered me a job, can I accept this offer as I will be employed by him and not have any involvment in the running of it. Any help would be appreciated. Also can anybody answer this question can a bankrupt be a sales person as technically you would be promoting a business am I right?

Go ahead and do not worry its fine..

 

[inneedofhelp]

Thank you for your help

 

[Dave Shaw]

If you are an undischarged bankrupt you cannot act as director without permission from the court, however you can be employed by the company.

However as you were a director of the previous company you will be caught by the provisions that restrict the re-use of the company name. Section 216 of the Insolvency Act 1986 prevents you (asuming the new company has the same or similar name) from being.... ".. for a period of 5 years... be a director.. or in any way, whether directly or indirectly, be concerned or take part in .... the... management of any such company..." If these provisions are breached the person concerned could be liable to imprisonment or a fine and be persoanlly liable for the new company's debts.

You would therefore need to get advice as to whether the company name means you would breach these provisions and the risks attached of your involvement. There are also exceptions to these provisions through court applications and other actions that you can get advice on.

David Shaw
totalitysolutions.com

 

Ensure that you have a correct Contract of Employment in place and you will be fine, the problem only lies if it were investigated and you were deemed to be a shadow director i.e. pulling all of the strings etc

 

[Dave Shaw]

Ensure that you have a correct Contract of Employment in place and you will be fine, the problem only lies if it were investigated and you were deemed to be a shadow director i.e. pulling all of the strings etc

Section 216 covers parties who are not necessarily directors - so you would need to be careful even if you do not classify as one (listed on companies house, known as a director or a shadow director).