Is this a shadow director and can I use it against them?

Discussion in 'Legal' started by AvangoCouriers, Jun 30, 2019.

  1. AvangoCouriers

    AvangoCouriers UKBF Contributor Full Member

    54 6
    I've had an ongoing issue with a customer having not paid for some months now, court date is set and I'm in the process of getting my evidence together.

    The client company is 'officially' run by the director, Mr. J

    But in the court paperwork his dad, Mr. P has written that he "Is responsible for the day to day operations of the company". Which makes me believe he is the real director when nobody is looking.

    The thing is, Mr. P has numerous businesses already in administration and I believe is personally in an IVA for his own debts, which I think is why he's not listed as an official director.

    So does this raise any 'shadow director' issues or have I misunderstood how that works? Or is there a way I can use this to prove irregularities behind the scenes to strengthen my case?
     
    Posted: Jun 30, 2019 By: AvangoCouriers Member since: Feb 13, 2014
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    23,503 2,839
    What has your solicitor said when you put this to him?
     
    Posted: Jun 30, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. consultant

    consultant Your Business Community Staff Member

    5,603 779
    Whilst I am not a legal expert, I wonder why it matters?

    As mentioned, you need legal advice froma solicitor or via a help line you might have if you are a member of a business group.
     
    Posted: Jul 1, 2019 By: consultant Member since: Jan 21, 2008
    #3
  4. Supercoach

    Supercoach UKBF Regular Free Member

    318 57
    This is standard text for someone in the company - often a manager - but someone who is not a director.
    You have suspicions but no proof and it does not alter the facts of the case so forget this angle and simply concentrate on facts.
     
    Posted: Jul 1, 2019 By: Supercoach Member since: Feb 10, 2015
    #4
  5. OhhEnnEmm

    OhhEnnEmm UKBF Contributor Free Member

    57 5
    Any more information on the whole "Shadow Director" thing? Or a link to a relevant thread please? I'm interested now...
     
    Posted: Jul 5, 2019 By: OhhEnnEmm Member since: Nov 6, 2018
    #5
  6. Scalloway

    Scalloway UKBF Legend Free Member

    16,243 3,437
    Posted: Jul 5, 2019 By: Scalloway Member since: Jun 6, 2010
    #6
  7. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,133 2,009
    I read the answer before I looked at who had posted it and I knew that it must be you :D
     
    Posted: Jul 5, 2019 By: Ian J Member since: Nov 6, 2004
    #7
  8. Ian J

    Ian J Factoring Specialist Full Member - Verified Business

    6,133 2,009
    I would like to point out that this isn't me :D
     
    Posted: Jul 5, 2019 By: Ian J Member since: Nov 6, 2004
    #8
  9. AvangoCouriers

    AvangoCouriers UKBF Contributor Full Member

    54 6
    Thank you for all the responses and sorry I haven't replied sooner - between a short break, some working away and a spot of ill health I'd forgotten about this post.

    I haven't officially assigned a solicitor, but as one of my customers is one they've given me bits of 'unofficial' advice, and they agree with @Supercoach on this occasion that I should focus on the facts of my case and not worry about this for now.
     
    Posted: Jul 9, 2019 By: AvangoCouriers Member since: Feb 13, 2014
    #9
  10. Mike Hutchinson

    Mike Hutchinson UKBF Contributor Free Member

    53 1
    Day to day running is not necessarily the same as being a director. The director is legally responsible for the actions of the company and cannot get away from that. If the father is making all of the decisions then he may well be a shadow director but if he is simply working in the office that is less clear cut.
     
    Posted: Aug 19, 2019 By: Mike Hutchinson Member since: Sep 12, 2015
    #10
  11. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,545 455
    [QUOTE="
    The thing is, Mr. P has numerous businesses already in administration and I believe is personally in an IVA for his own debts, which I think is why he's not listed as an official director.
    ?[/QUOTE]

    You can still be a Director whilst in an IVA. Disqualification or Bankruptcy prevent an individual from acting as a Director.

    I doubt it makes much difference to you if your claim is against the Company.
     
    Posted: Aug 20, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #11