Limited By Guarantee Company Director

k9kobra

Just looking for some advice really.

I became the director of a non-for-profit organisaio 6 months-ish before it was liquidated. the company was already in problems before i became director and i was aware of this at the time.

The company has been in liquidation for about a year and according the companies house website, is due to be dissolved exactly a year from the date the petition was put forward by the isolvency practitioner.

Do i have anything to worry about?
This year has been a non stop worry and i cant wait for it to finally be dissolved. Surely if there is now a dissolve date listed that means everything should be fine?

I have had a very worrying year as i was initially told by a "friend" that if i became director i would not be liable for any of the debt. Since proceedings started this has been replaced with "everything SHOULD be ok", "i dont think there is anything to worry about" etc. My trust has been broken to the fullest extent.

If anyone can advise me on the above id be very appreciative.

Bethankim

Hiya,

A company limited by guarantee is genally set at £1. the only way you would be liable for any more is if..

It can be proved the directors did not show due diligence. then yes liability can be more..its a bit wooly and in all the years i was supporting charities ( 10 years) I have not come accross any director becoming liable for any more than that.

neglecting due diligence means:
if there are no minutes taken of important decisions, the directors let a few members get on with it and didnt fulfll thier legal obligations (in terms of financial and employee etc)

as long as the minutes were taken and signed as a true record at each meeting
the accounts were properly audited and signed off at the annual general meeting
the company did not enter into dodgy deals - can include paying directors for services without declaring it properly, not declaring conflicts of interest etc
basicallyas long as you stuck to the articles and memorandums of the company
then you should be fine, if there were problems then you would have been contacted by now.

hope that helps

Beth