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Company limitations when bankrupt...

Hi

Anyone got any thoughts on this condition of bankruptcy actually means?:

You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court

Formation is pretty clear but promotion & management are less so. Can I not work in sales as this would promote the company? What level of management is prohibited - non voting board member / line management / etc?

Also any ideas on how one would apply for the permission of the court?

Any thoughts would be gratefully received - thanks.

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    This only refers to the highest jobs in the company where you are making decisions as to the direction of the company as a whole, so salesman linemanager etc are perfectly fine. The reason this exists is to define the job of the director as you cannot be a director, but some people would try and put a stooge in and do all the directors jobs without actually being on the board
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • John64
    John64 Posts: 15 Forumite
    Great - really helpful.

    Thanks!
  • How would this apply when it's only a two person company? Could I continue to work for it if my business partner is the sole director? Also, how likely is it that the court would give permission? My only source of income is my company, so if I couldn't work there then that would be a little counter-productive!
  • debtinfo
    debtinfo Posts: 7,012 Forumite
    It is obviously more difficult the smaller the company, is the other person invilved capable of running the company on there own, if they are then their should be no problem, you just have to keep your job roles clear he/she runs the company and gives you the work to do for which you get paid a fair wage
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
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