Insolvency

[Jacob albert]

My business looks like it's heading for insolvency. My business partner intends to take as much money out as is possible before he calls it. I don't because I know its wrong and you can't. I know people would say you'd have to put concerns on writing and resign. But here's the problem. If I do that I get nothing. If we call in insolvency and get made redundant I'll be able to claim redundancy from rps. What to do

 

[Scalloway]

You need to speak to an insolvency practitioner.

 

[obscure]

Does the company have debts? Point out to your partner that if they take money that should go to creditors then they can forfeit protection against liability (which is the purpose of a Ltd company) and may become personally liable.

 

[Paul Norman]

You need to - are supposed to - stop the business.

You don't mention whether it is a Ltd company or not? That would change the details of what happens next.

 

[Michael Gerard]

As per Scalloway - speak to an IP. Also, see section 212 of the Insolvency Act.

 

[Lisa Thomas]

You need to speak to an IP to establish what is the best route for the Company which might be dissolution or Liquidation (either voluntarily through an IP or via the Court).

You may also like to post your query under the Insolvency section of the forum to get more insolvency feedback.

What your partner is proposing is illegal and you can both be pursued personally for repayment together with other ramifications such as being fined and disqualified.