Help- Resigning from a private limited company

Discussion in 'Legal' started by Dan227, Oct 14, 2021.

  1. Dan227

    Dan227 UKBF Newcomer

    1 0
    I am a director of private limited company with another person. Both with 50% shares.

    I am an art student and we created the business to sell my art. I have little to no business experience, I entered a partnership with my friend who has experience on a verbal agreement he would handle the businesses side and I could create the art.

    However, we had a disagreement and he removed himself as a person with significant control but kept his shares and is not contributing anything. I no longer wish to keep my role as director or be in business with him at all.

    We initially applied for a business bank account but no banks were taking on new business accounts due to COVID. So we bought all the stock with our respective private bank accounts. I bought the majority.

    My questions are; am I able to resign from the company fully, but keep the items I bought? And create another similar business alone?

    Sorry for my complete lack of knowledge.
    Thanks in advance,
    Posted: Oct 14, 2021 By: Dan227 Member since: Oct 13, 2021
  2. Scalloway

    Scalloway UKBF Legend

    17,353 3,742
    Theer is nothing to stop you resigning as a director but that leaves the company as a rudderless ship. Better to have it dissolved. The procedure is here. It costs £8 if you do it all online.

    You must pay off any outstanding bills that the company owes.

    If you have proof you paid for the stock yourself then I would say just carry on.
    Posted: Oct 14, 2021 By: Scalloway Member since: Jun 6, 2010
  3. WaveJumper

    WaveJumper UKBF Legend

    2,243 563
    Certainly don't resign as a director as you will loose day to day control of your company. Best you both agree to close the company down and go your own separate ways
    Posted: Oct 14, 2021 By: WaveJumper Member since: Aug 26, 2013
  4. Lisa Thomas

    Lisa Thomas UKBF Legend

    3,871 547
    Has the stock been declared in the company accounts, with you bring treated as owed a director loan from the Company?

    If so, the stock does not belong to you, it belongs to the company. If the company is insolvent it is illegal for you to transfer it into your name, without paying the company for it at market value.
    Posted: Oct 14, 2021 By: Lisa Thomas Member since: Apr 20, 2015