INTENTION TO COMMENCE PROCEEDINGS TO DISQUALIFY ME

Discussion in 'Insolvency' started by Seb78, Feb 25, 2020.

  1. Seb78

    Seb78 UKBF Newcomer Free Member

    13 0
    What kind of material misconduct could they have? If I was to fight it on my own then what else do I have to lose other than my time and a further six month ban?
     
    Posted: Feb 27, 2020 By: Seb78 Member since: Feb 25, 2020
    #21
  2. Mr D

    Mr D UKBF Legend Free Member

    22,065 2,593
    You acted badly as a director. Hence they want to stop you doing so again for a while. Either by forcing the issue or you choosing to take disqualification.

    They cannot stop you running a business. They can stop you doing so as a director.
     
    Posted: Feb 27, 2020 By: Mr D Member since: Feb 12, 2017
    #22
  3. MikmakFer

    MikmakFer UKBF Contributor Free Member

    38 7
    Personally, I would rather represent myself in court but I've been an accountant for 10 years and now I am a turnaround consultant who often works in Companies who are struggling therefore I need to be well versed in these rules. This is because if I show an owner/director the path out then they can rely on that to satisfy wrongful trading claims. I need to ensure that I am on the correct side of the law at all times. You'll have a lot of researching to do to ensure you are comfortable with the claims against you and you'd need to put your points across in the manner accepted in a court.

    You've obviously screwed up but the question is whether you have screwed up to the extent of being unfit to hold office.

    To the other points - I'll add that these are opinions and not advice as you mention above :):-
    1. What made you believe you could trade out of it? Was this an opinion of someone else or was this calculations or (hopefully not) a gut instinct? This is important as is your main stance.
    2. Investors - how hard did you try i.e. did you have sit down and minuted negotiations?
    3. To the point above of "accept voluntary disqualification" - I wouldn't accept voluntary disqualification in any way. I'd fight it because if you fight it you've got a chance of winning but if you don't then you'll get disqualified anyway... Perhaps @Lisa Thomas can provide an opinion on the difference in penalties for voluntary disqualification vs court ordered disqualification?
     
    Posted: Feb 27, 2020 By: MikmakFer Member since: Feb 11, 2020
    #23
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    1. The stress, aggravation and time of dealing with a Court Hearing

    2 The risk of a costs order being sought against you if you lose.

    You are highly unlikely to change their minds about their grounds for disqualification. It is difficult to challenge them and they use very specialised Counsel.

    There may be some scope to negotiate perhaps a voluntary undertaking for say, 3 years instead.

    If your other 2 companies are Limited and you need to continue to be a Director you can apply to Court for permission to continue to be a Director for those 2 Companies however you will need to show the Court good reason for this and there will also be costs involved for the applications.

    I can recommend a specialist Solicitor to help you, if you want to take formal advice. DM me.
     
    Posted: Feb 27, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #24
  5. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,477 2,366
    Are you the owner of the other two companies, as no doubt they will still want their money back even if the disqualify you as a director
     
    Posted: Feb 28, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #25
  6. Seb78

    Seb78 UKBF Newcomer Free Member

    13 0
    1. Im quite familiar with the court system and I am not going to be intimidated by their threats.
    2. If they are successful and obtain a costs order I don't have any assets so I am not sure how they think they are going to force me to pay.
    3. This could take a few years to get to court. I think I would rather do that than just hand them what they want and have to resign from my companies within 28 days.

    Please do let me know which firm of solicitors you think I should contact. I have already been in touch with a few. Thanks!
     
    Posted: Feb 28, 2020 By: Seb78 Member since: Feb 25, 2020
    #26
  7. Seb78

    Seb78 UKBF Newcomer Free Member

    13 0
    Not sure how they would try and enforce that. Surely that is the whole point of having a limited company? You are personally protected by the veil of the corporation.
     
    Posted: Feb 28, 2020 By: Seb78 Member since: Feb 25, 2020
    #27
  8. Mr D

    Mr D UKBF Legend Free Member

    22,065 2,593
    A veil which can be removed.
     
    Posted: Feb 28, 2020 By: Mr D Member since: Feb 12, 2017
    #28
  9. Seb78

    Seb78 UKBF Newcomer Free Member

    13 0
    Yes they can apply to the court to have me banned from being a director but I don't believe they can enforce anything else.
     
    Posted: Feb 28, 2020 By: Seb78 Member since: Feb 25, 2020
    #29
  10. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    4,933 1,645
    Are your other companies profitable ?
    Does either of them have any record of missed payments to HMRC ?
    Your were trading insolvent for 12 months(the impression that your post gives) and favouring a creditor above the vat bill and you cant really do that .

    You say you have little money and no assets so I am wondering if it would be just less hassle for you to let the whole lot go and maybe pack in this business game in or a least running a limited company .

    I don't think they will be looking to you to pay the vat bill personally but you do need to be aware that some solicitors claim to be able to make a director liable for company debts when they have evidence of the company trading insolvently !
    HMRC don't miss a trick and if this is possible through the courts they could be looking at this option as indicated by one of the other usual suspects

    It kills me to post this and you to be reading it as I don't like to make a persons situation feel worse but it is possible
     
    Posted: Feb 28, 2020 By: JEREMY HAWKE Member since: Mar 4, 2008
    #30
  11. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    11,477 2,366
    Are they not assets?

    Are they also VAT registered and if so are they under the same registration?
     
    Posted: Feb 28, 2020 By: Chris Ashdown Member since: Dec 7, 2003
    #31
  12. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    It seems you have made up your mind but I have DM'd you some contact details.
     
    Posted: Mar 3, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #32
  13. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,486 436
    The Liquidators can pursue you personally for misfeasance and other misconduct.
     
    Posted: Mar 3, 2020 By: Lisa Thomas Member since: Apr 20, 2015
    #33