Former colleague keeping money from settlement of a company...

ILW

Money_Grabber13579 wrote: »

Absolute rubbish. This is a company so the directors are not personally liable for any losses unless there was fraud involved. So they cannot take your house, unless it was also owned by the business, or put up for security for a loan.

Sorry, but if it is found that fraud or mis management has taken place, then directors can be found personally liable.

Steel_2

lalabama wrote: »

Thanks so much. Although this isn't the best news to hear, you may well be saving me from more grief in the long run. Many thanks.

lalabama

At the end of the day, the only way to look at it is: thank god you aren't liable for any of the debts and can start up another company again and be a director in the future.

But do make sure you see all the books and financial transactions relating to that VAT payment being distributed to make sure they haven't trousered it.

The last thing you want is for something the other director's have done to come back and bite you....

Steel_2

ILW wrote: »

Sorry, but if it is found that fraud or mis management has taken place, then directors can be found personally liable.

That's what money-grabber said in his post:

"This is a company so the directors are not personally liable for any losses unless there was fraud involved."

If fraud is proved, a director may be personally liable and issued with statutory demand by those creditors with proven claims to pay within 28 days or face bankruptcy proceedings. Of course you can talk to them within that 28 days and come to another equitable arrangement for payment, but if you've been found to have trousered assets away from the creditors they may not be so nice and prefer to take you to a bankruptcy court and let a judge decide. Some creditors are willing to pay the costs of a court case if the judge forces them to take a reasonable offer from the Director (and end up with costs granted against them) just to see the Director wriggle....

ILW

Steel wrote: »

"This is a company so the directors are not personally liable for any losses unless there was fraud involved."

....

And a few other things such as knowingly trading whilst insolvent etc. Just trying to point out to the OP that you cannot treat it as a bit of a game and just walk away when the creditors come knocking.