Bankruptcy / Director shares in Startup question

smackjack

Hi,

Looking like bankruptcy could be the best option for my situation:
- No assets / renting / no car
- Currently self employed with variable income £500 - £1200 per month
- Approx £28k of debt including £14k for VAT which I owe HMRC

The only issue I can see is that I am a founding shareholder in a new start up company. Company is LTD and I have 33%.

The company is trading but revenue is minimal as we are trying to raise investment, and also testing the product.


1. I know I cannot be a director if bankrupt, but what would happen to my stake in the company ?
2. Also could i remain a shareholder, but be an employee or preferably a self employed contractor or consultant until discharged ?

Any help greatfully appreciated.

longtermplanner

It sounds as though your shareholding won't be worth very much I suggest you discuss the options with Business debtline http://www.bdl.org.uk/

debtinfo

your shareholding will become an asset in the bankruptcy and the trustee may sell it to whom they wish unless there are covenants controlling the sale of the shares.

You can be an employee but you cannot exercise control over the company . the exact wording of the law is that you cannot be involved in the promotion, formation or management of the company, what do you think you would be doing as an employee or consultant that would not fall into one of those catagories.