old company debt

[Trader4]

An old company went into receivership 6 years ago.

Friend made loan to old company ( chq made out to old co) that was paid into old co account whereby stock would be purchased and profits split, friend made good profit from this and was repaid far more than original loan. How he allocated these repayments was never confirmed. ( offset against loan or just profit profit profit) any repayment made always came from the old co. either chq or cash and records of payments made and available.

After liquidating of company friend has decided to come back and say he is owed more money! and it was a personal loan not to the company.

There was no contract as such - can he pursue me personally.

 

[StevensOnln1]

I doubt they would get very far if they could not offer any proof of you making a loan to them personally.

 

[Trader4]

Just to clarify they made loan to Old Co -

 

[Jonathan Black]

So is the debate whether the loans were to the company or you personally?

If the loan was made to the company, and you were not deemed to have acted inappropriately as a Director, I don't see how he could pursue you personally.

 

[bovine]

6 years old debt, not been chased? Probably statute barred if against you, but it was a debt of the company anyway. Died with the old co.
So, he isnt getting his money back.

 

[KAC]

Does your "friend" have any documentation/correspondence to show that it was a personal loan to you?

 

[Newchodge]

When was the loan made? The debt is dead if not pursued within 6 years, which looks likely. Ignore him unless he starts legal proceedings.

 

[nelioneil]

The fact it was paid to the company suggests it was not a loan to the individual, but to the company.

 

[KAC]

The OP could have send to his friend "Lend me £x but give me a cheque payable to my company as I'm overdrawn and I don't want to pay it into my personal account". hence the query as to whether there was any documentation/correspondence

 

[KAC]

It isn't 6 years from the date the loan was made but effectively 6 years after the last repayment was made or when you last acknowledged the debt. More details here although I realise that you don't accept that the loan was made to you

 

[Newchodge]

It isn't 6 years from the date the loan was made but effectively 6 years after the last repayment was made or when you last acknowledged the debt. More details here although I realise that you don't accept that the loan was made to you

rue, but the OP said that the friend was repaid more than the amount of the loan, which he seems to have treated as profit, so no repayments made and no request for repayments. At least that's how I read it.

 

[KAC]

rue, but the OP said that the friend was repaid more than the amount of the loan, which he seems to have treated as profit, so no repayments made and no request for repayments. At least that's how I read it.

I was just confused as to what exactly had happened