Do i own it? PLEASE HELP

TheMAN_2

Ok so a little off topic but hope you all can help.

The situation is as follows, i own a small limited business. When we set up at the cost of 10-15k one of our staff paid for £2000 of items for the business. All invoices are in the business name but they paid. Nothing has been put in writing.

Originally a repayment plan was set in place £100 per week. After 6-8 weeks they now don’t want to know and want the balance in full. They have said if we can’t pay they will have the items they paid for removed by bailiffs.

Am i correct to assume a bailiff can’t act without a warrant or court order, and if they were to remove the items it would be theft?

And the other question is they paid but as it was invoiced in the business name who owns the items? Is an Invoice proof of ownership?

Please help!!

Thanks

Tixy

I would think legally the business owns the stuff because of the invoices, I would say that was proof of ownership. Presumably if you went to the supplier and ask who they sold to they would say TheMAN Limited, not Fred the employee.

He certainly cannot get a bailiff to do anything without a court order.

That said its not an ideal situation, especially without an agreement in place. If he did take the company to court he may well be successful in getting a CCJ against the company (as you are not disputing the money is owed). But even then if the company is not in a position to pay the debt back then the judge is likely to order the company to pay in installments anyway.

kate_pixie

Don't quote me on this but I think legally the business owns the assets. But the employee who paid for them is deemed to have invested £2,000 capital into the business.

I'm afraid I can't help you with the legal ramifications of trying take back capital but they can't send bailiffs round without a court ruling, and I understand he hasn't got that far yet.

I hope you find an answer though.

dreamdreamer

It does sound like the company owns the assets - however the employee could probably prove they paid for them (through banking transactions etc) so if it got to court I think you'd have to pay it back. However if 8 weeks have passed you only have 12 weeks of repayments. Continue these, it would take a good while for it to get court and you might be repayed before that happens - if not, they can't make you pay what you haven't got so at worst they'd up the repayments.

P.S Is the employee still employed?!