Partners having trouble opening a business account because of my past bankruptcy :(

bubblebum1982

Hi

Hi

I went bankrupt in 2007 discharged in 2008 - desperately needing some help with a current problem.

My partner (who wasn't around when I declared bankruptcy) has set himself up a ltd company as he's now going to be working freelance. He has appointed me as a shareholder. He went to barclays for a business bank account, but has just been declined because of my bankruptcy.... I provided them with a copy of my discharge. Can this be right? Even when I will have no access to either the company or bank account, I am merely just a name on a piece of paper?

Please if anyone knows anything regarding this we would be most appreciative of some advice in sorting this matter.

Sabrina x

sniggings

if you and him have ANY financial links then your credit reports will be linked too,if this is not the case then you can fix this by having those links removed.

bubblebum1982

Hi,

Thank you for your reply.

We currently have no links what so ever

Xx

silvercar

You (or he) is asking the bank to open an account where a major (?) shareholder is a recent discharged bankrupt. The limited company is the link between you and the company and that will be the stumbling block.

patman99

What would happen if he was to open the account as a sole shareholder, then a month later, 'sell' some shares to someone who is a discharged bankrupt ?.

silvercar

patman99 wrote: »

What would happen if he was to open the account as a sole shareholder, then a month later, 'sell' some shares to someone who is a discharged bankrupt ?.

He would have to declare to companies house, I think within a month, of the change in shareholding. The bank may notice at this point. It would also be stated in the company accounts, produced each year, a copy of which the bank would require.

So he risks the bank closing the account after a month or a year, depending how quickly they notice.

Annisele

Depending on the percentage of the shares you hold, you might not just be "a name on a sheet of paper".

If you have a significant number of the shares, you also have a significant influence over the running of the company.

Mouse1812

silvercar wrote: »

He would have to declare to companies house, I think within a month, of the change in shareholding. The bank may notice at this point. It would also be stated in the company accounts, produced each year, a copy of which the bank would require.

So he risks the bank closing the account after a month or a year, depending how quickly they notice.

Sorry but that is incorrect. Changes in shareholder do not get reported to Companies House until the next Annual Return is filed. The one month requirement relates to directors, not shareholders.

The names of the shareholders are not reported in the Accounts either, only the directors.

I would go back to the bank and point out the difference between shareholder and director - its quite a significant (but common) error to make.

silvercar

The annual return (to companies house) must state the names of shareholders:

If the company has share capital, the annual return must also contain:

The nominal value of total issued share capital
The names and addresses (if applicable) of shareholders and the number and type of shares they hold or transfer from other shareholders.

from here:

https://ewf.companieshouse.gov.uk/help/en/stdwf/glossaryHelp.html

So once a year the company is required to inform Companies House (on the Annual Return) the names of the shareholders.

Incidentally virtually all companies have share capital, even if it is a nominal £1 per share for 100 shares issued as this is an effective way of owning the company.

Mouse1812

Which agrees exactly with what I said "Changes in shareholder do not get reported to Companies House until the next Annual Return is filed"

Ineedaname

Mouse1812 wrote: »

The names of the shareholders are not reported in the Accounts either, only the directors.

Not quite, because yo ucontradicted yourself with the above.

At the end of the day, the OP's other half is better off 'going it alone', whether self employed or Ltd, but without the OP having anything to do with the business, at least until the BR drops off credit files.