Where does she stand - Husbands company

workingboy

A female friend of mine whose marriage is breaking up.

Her husband who is in business of his own and to which she is a company secretary. She complies the books for the Tax and Company house which is passed to the accountant for final preparation to be presented.

They have recently separated, she still living at the home but he is else where. There is a large amount of money in the company account to which recently he has taken a large amount out.

She is about to start divorce procedures against him for she has proven reasons why.

She is not listed as a director, can he remove her from the company position/books without her consent and also does she have any say about the amount he has or is removing from the company account.

Briefly where does she stand, she is approaching a Solicitor in the latter park of the week.

Thanks

bill_creative

A Company Secretary is essentially an administrative role and she won't have any say in what money the directors choose to draw from the company. He can remove her from the role without her consent and it is no longer a requirement to have a Company Secretary at all for a Limited Company (unless it is a PLC).

Does she have any shares in the company?

NAR

One would assume she could take unfair dismissal procedures against the company.
Regarding company finances her solicitor can demand personal and company bank statements in relation to the financial settlement.

prowla

Without shares and/or directorship, the company isn't her business.

Hubby's income from it presumably is, according to whatever rules are in play regarding salary, debts, etc.

Being "let go" by the company kindof depends upon the contract of employment.

Yorkie1

In addition to the above, legally if the bank account is a company bank account, the funds in it belong to the legal entity which is the company, and should not intertwined with individuals' banking needs.

Certainly if he is seeking to conceal funds by withdrawing them from the company, she will be able to ask pointed questions during the divorce proceedings.

workingboy

Ok thanks all

she now knows what to sort out with her solicitor when they meet later in the week.

She knows, as she has access to the account statements either online or bank. That recently a large amount of cash has been taken, some of which could have been used to pay 2 or 3 years back tax and vat also a hefty fine, which a summons was addressed to the company also to her as well as hubby by name.

thanks again

Mojisola

workingboy wrote: »

She knows, as she has access to the account statements either online or bank. That recently a large amount of cash has been taken, some of which could have been used to pay 2 or 3 years back tax and vat also a hefty fine, which a summons was addressed to the company also to her as well as hubby by name.

Why would that be taken out as cash? Surely a cheque from the company account would be sent in payment?

workingboy

No one knows why.

She has been advised by friends not to confront him about this until the solicitor has been approached.

Padstow

If they were together for some years, no children and he is self employed, urge her to seek a lump sum settlement and a clean break. The fact that he's already moved money means he won't play fair.
She can ask all the questions she likes as to where it's gone? Fact is that only money in the pot on the day of the final hearing counts.

I practically had to pin my barrister against the wall before she admitted that was true. The legals love to tell us the Judge won't be happy and all that nonsense, when the truth is the Judge only cares about figures not behaviour.
If there is evidence of property being sold, or such is the net worth (over 5M and complex) that it's heard in the High Court, well that's a different matter.

NAR

Something else which may be relevant (though in truth I have no idea) is the company set up as a limited company, as that might have some influence on how the funds are treated.

Padstow

Mojisola wrote: »

Why would that be taken out as cash? Surely a cheque from the company account would be sent in payment?

I can guess.
If you want to read what they are capable of Mojisola, I will PM you at your invitation.