My dad made me put his business in my name, he has now got me in debt with HMRC

[STDFR33]

Yes, if there are two directors then both need to sign.

As majority shareholder, they can remove the other director.

 

[Blaby Loyal]

The shares were transferred to dad back in July though.

 

[abilee123]

The shares were transferred to dad back in July though.

Not officially, because he never signed the forms. On companies house, I'm still the shareholder. But I don't really want to have anything to do with striking the company off. I'm a beautician who is studying at college lol not an electrician, if it ever comes back to me will they not take into account that I'm a 20 year old woman (or was at the time of signing the papers), why would I have an electrical business?, also that my dad threatened to make me homeless if I didn't sign the papers as I live with him, and that I have paper bank statements of the whole 2 years the business existed and screenshots on my phone of my dad taking out almost 2000 pounds every month out of the bank account, money being taken out by petrol stations (I don't drive), money being taken out by shops that sell electrical stuff, not once have I used my business bank card or ever taken any money out or added any money into the account. Also, all the letters from the accountants were addressed to my dad. My dad had all contact with the accountant, I've never spoken to them at all or even knew they existed until 2 days ago when I emailed somebody there saying I want my name taken off the company because I'm still showing active on companies house after being under the impression that my name was taken off. He was the acting director the whole time, and the business is being closed down next week anyway which my dad will be sorting out probably so all of that will come from him too. Maybe I'm being stupid but I thought this would've been taken into account if I'm ever questioned about it??

 

[Blaby Loyal]

if it ever comes back to me will they not take into account that I'm a 20 year old woman

They might do or they might not. Personally I do not think an investigation (if there is one) would find you totally without any kind of blame. Surely you would have had to provide a specimen signature etc. for use with the bank account.

If I was you I'd have grave concerns that stuff like money laundering etc hasn't gone on as was commented on earlier on in the thread.

Something doesn't stack up with why it was all set up in your name and dad only came on board very late in the day.

 

[fisicx]

And never, , trust your Dad ever again.

The only reason he set you up as a director is because something dodgy was going on.

 

[abilee123]

They might do or they might not. Personally I do not think an investigation (if there is one) would find you totally without any kind of blame. Surely you would have had to provide a specimen signature etc. for use with the bank account.

If I was you I'd have grave concerns that stuff like money laundering etc hasn't gone on as was commented on earlier on in the thread.

Something doesn't stack up with why it was all set up in your name and dad only came on board very late in the day.

The bank account was all done over the phone when he set the business up, he did all the talking but they did keep asking to speak with me and asking if I give permission for my dad to talk to them, to which I said yes. I cant actually remember if I signed anything for the bank account, but I've never been into a branch, so the only way is if they had sent forms to us and I signed them at home. But I don't remember doing any of this.

Also, I doubt my dad has been money laundering, he has no bloody money to launder anyway. I think he was added late because I said I want my name off, he must've had intentions to do so but then just not followed through with it. He has a current business that he IS the owner of, but he hasn't used his middle name like he did when he added himself as a director for "my" business.

He had a business in 2009, I think that might have been closed down because of debts, well that's the probable reason anyway. It's very much like him to be in debt, not pay bills, owe people money etc. He does it all the time. I didn't know this when signing these papers though. So I think this was why he couldn't own a business, but I tried searching for this business and I can't find it on companies house anymore or his name on the list of disqualified directors.

Do you think I will be disqualified as being a director after everything that's happened? Also, I just spoke to my dad and asked what happens now with striking off the company and if I have to sign anything, he said no and that the accountant will do the tax return then shut it all down. Not sure how they could do that without me signing though unless he really does forge my signature.

 

[abilee123]

And never, , trust your Dad ever again.

The only reason he set you up as a director is because something dodgy was going on.

I think he had been disqualified as a director from his old business in 2009, and that's why he put it in my name. I won't be trusting him ever again and our relationship will never be the same either.

 

[Blaby Loyal]

Do you think I will be disqualified as being a director after everything that's happened?

Unlikely but if the company gets wound up (i.e. a formal liquidation) then the risk increases greatly.

and if I have to sign anything, he said no and that the accountant will do the tax return then shut it all down

And you believe that do you? I've already told you both directors need to sign the DS01. He's talking drek already. What's the effin point in doing the tax return - to tell HMRC the exact amount they won't be getting?

This is from the GOV.UK website

You can be prosecuted and become personally liable for the company’s debts if you carry out company business on the instructions of someone who’s disqualified.

Cheers dad - thanks a bunch.

 

[NickGrogan]

if it ever comes back to me will they not take into account that I'm a 20 year old woman (or was at the time of signing the papers), why would I have an electrical business?

I'm not sure how this makes a difference. Why wouldn't a 20 year woman own an electrical business? I can imagine the outrage if a 20 year woman came here for advice about starting a business and was told she couldn't because shes a woman.

Are the accountants members of either ACCA and ICAEW? - there are regulations about how accountants work, and refusing to speak with the director and majority shareholder of a client has got to be against them. If they have knowingly helped your father to be a shadow director and hid this from you that is another issue.

Some speak to a solicitor, they may take this on a no win no fee basis.

As you've been the director for years, and helped to open the bank account and so on, then claiming no knowledge is going to be difficult as its not true.

First, go on to companies house and remove your father as a director. You don't need his permission.

Call the bank and as the director take your father's name off of the account and cancel any cards he has. Also ask them to cancel any online access he has, and to set you up with access. Request the last 12 months bank statements. Ask if there are other accounts in your company nae. Do this tonight.

Next call the accountants, remind them that they work for the company, and as director of the company that means that they work for you. Tell them to provide no further information or access to your father and to send you copies of all returns that they have submitted to HMRC and Companies House. Ask them for details of all company bank accounts, there might be more than one. If there are more, call the bank and get access to those too.

Next, get legal advice about suing the accountants.

It's your company, its in your name, you have always known about it, so its time to take control.

 

[UKSBD]

Cockwomble (kudos to @STDFR33 for the first use of the term on this forum that I've noticed)

Best use of it I've seen was This Country using it in the credits after one of their episodes -
Nosey old cockwomble played by *****

 

[Mr D]

OP, unfortunately you agreed to be a director without understanding the responsibilities.

If he has signed you up for personal guarantees or there is ever an investigation done what are the odds he will give one story and you will give another? And the official record is that you are a director.

Take control and deal with the company or do as you have done and leave it all to him.

 

[Newchodge]

While I cannot help with your problem, other than to suggest that you see a solicitor, may I suggest that you NEVER, EVER, UNDER ANY CIRCUMSTYANCES do anything that your father asks you to do. Except, possibly, taking out the rubbish. Even then, I would be very, very certain about what was in the bin.

Your father has taken advantage of you in, financially, the worst possible way. Dad's don't do that.

 

[stuartm1962]

Sorry so just to confirm, if I want nothing to do with this debt, what I have to do is resign as director, secretary, and a PSC, then it will all be left to my dad? I own shares you see, and he has made a mess of the share transfer forms on purpose, also the accountant I need to give this form into is absolutely useless and ignored my last email. I just basically want to leave the company completely, have nothing to do with the debt, and if my dad is liable then so be it.

You can register online with Companies House and then resign as a director as already mentioned.

Next step is to go to Barclays and close the account.

You can also close the Company. Personally i would just resign as a Director and let your dad sort it out. Do not contact his accountants, just deal with Companies House directly.

 

[The Byre]

First, go on to companies house and remove your father as a director. You don't need his permission.

Call the bank and as the director take your father's name off of the account and cancel any cards he has. Also ask them to cancel any online access he has, and to set you up with access. Request the last 12 months bank statements. Ask if there are other accounts in your company nae. Do this tonight.

Next call the accountants, remind them that they work for the company, and as director of the company that means that they work for you. Tell them to provide no further information or access to your father and to send you copies of all returns that they have submitted to HMRC and Companies House. Ask them for details of all company bank accounts, there might be more than one. If there are more, call the bank and get access to those too.

Next, get legal advice about suing the accountants.

It's your company, its in your name, you have always known about it, so its time to take control.

All the above!

Please (1) follow Nick's advice to the letter! (2) Get a new father.

If he has been disqualified, yet used you as a straw-man (well, straw-woman) then he has committed an offence. If an accountant has knowingly helped him, then he/she will very soon find themselves being an ex-accountant.

What you really need is some adult supervision here and I suggest that you contact @The Resolver, point to this thread and beg him for some advice.

 

[DavidWH]

If he has signed you up for personal guarantees or there is ever an investigation done what are the odds he will give one story and you will give another? And the official record is that you are a director.

I was surprised it took the 3rd page for this to get mentioned.

If there are any PG's creditors can come after you and your dad personally.

The cheque that was paid in to the bank was money of the companies, your dad removing it sounds suspect. How & why was it removed?