Partnership query

Discussion in 'Legal' started by Julie Fitzpatrick, Feb 5, 2018.

  1. Julie Fitzpatrick

    Julie Fitzpatrick UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    I started a business with a partner 10yrs ago. Due to personal circumstances I resigned as company director 5yrs who but continue to work in the same roll and still hold shares in the company.
    Can I walk away from the business without any repercussions???
     
    Posted: Feb 5, 2018 By: Julie Fitzpatrick Member since: Feb 5, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    Posts: 12,667 Likes: 2,724
    Do you have a shareholders agreement? If there is no provision for you leaving you just hand in your notice and leave at the end of it. You will continue to be shareholder.
     
    Posted: Feb 5, 2018 By: Scalloway Member since: Jun 6, 2010
    #2
  3. KAC

    KAC UKBF Enthusiast Free Member

    Posts: 580 Likes: 116
    Did you sign any personal guarantees while you were a director?
    Were you a signatory on the bank account?
     
    Posted: Feb 5, 2018 By: KAC Member since: May 7, 2017
    #3
  4. The Resolver

    The Resolver UKBF Ace Full Member

    Posts: 2,921 Likes: 946
    If there is a risk of liability of directors for events that took place more than 5 years ago then you remain liable (subject to a 6 year limitation for civil rights but unlimited for criminal).

    Your partner may also have a claim that for you to cease working for the company (especially if you have special status that brings in most of the customers ) amounts to breach of a contractual agreement to not do so.
     
    Posted: Feb 7, 2018 By: The Resolver Member since: Mar 31, 2006
    #4
  5. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    Posts: 1,691 Likes: 210
    The only issue I can think of is if the Company enters a formal insolvency procedure and the IP deems you have been acting as a Shadow Director and pursues you personally for any misconduct that might have occurred whilst the Company is insolvent.

    As it stands it sounds as if you are simply and employee so there is nothing to stop you handing in your notice and leaving but remaining a shareholder.
     
    Posted: Feb 8, 2018 By: Lisa Thomas Member since: Apr 20, 2015
    #5