Bank Chasing me personally for Ltd Company O/draft

OBIWAN

Hi all, this is a bit of a weird one.
In 2002 I took out a bank account for my business, a Ltd company, and provided all documents, certificate of incorporation etc. The business went bust last year and there was an overdraft on the account. The bank have started chasing me for the debt, however I have never given a directors guarantee.


Am I personally liable if I haven't given a personal guarantee? The original application form should have the correct details on, but is it likely the bank would have a copy 13 years down the line?


Ive tried to communicate with them but they've just issued a CC claim in my name.


Any help or the benefit of someone's knowledge would be massively appreciated.


thanks
O.

jonesMUFCforever

If they have gone as far as a CC claim do you not think they have something to back it up>?
You say you never signed a guarantee but companies who get overdrafts without security are rare.
Get legal advice.

InsideInsurance

A director can be personally liable for their duties as a director of a company, hence the existence of D&O insurance (Directors and Officers Liability) to cover this personal liability.

To hold a director personally liable then they'd have to prove you were negligent or failed to carry out your duties appropriately and that isnt an automatic thing simply because the company went bust.

It is urban myth that a ltd protects you, the "limited" part is the limitation of liability to shareholders not to the directors.

Doing this can be a fairly difficult hence why D&O is relatively cheap and hence also why a personal guarantee from directors is normally asked for as it then makes making a personal claim against the directors much easier as it moves into contract law.

Obviously the question that needs answering is if they are under the impression you did give a personal guarantee or if they feel your management of the company was incompetent and thus holding you liable for their losses.

tomo21217

If you check your overdraft faculty doc, there will be a watered down personal garrentee in it. Banks would not give you a completely unsecured overdraft, there will always be recourse. They have been lending money for years and know how to protect them selfs.

Dig out the faculty doc have a read but there will be a pg in it

Majestic12

InsideInsurance wrote: »

A director can be personally liable for their duties as a director of a company, hence the existence of D&O insurance (Directors and Officers Liability) to cover this personal liability.

To hold a director personally liable then they'd have to prove you were negligent or failed to carry out your duties appropriately and that isnt an automatic thing simply because the company went bust.

It is urban myth that a ltd protects you, the "limited" part is the limitation of liability to shareholders not to the directors.

Doing this can be a fairly difficult hence why D&O is relatively cheap and hence also why a personal guarantee from directors is normally asked for as it then makes making a personal claim against the directors much easier as it moves into contract law.

Obviously the question that needs answering is if they are under the impression you did give a personal guarantee or if they feel your management of the company was incompetent and thus holding you liable for their losses.

Whilst you are correct with your statement, this is scaremongoring. This has nothing to do with the bank or the issue with being chased for a company debt.

Archi_Bald

Majestic12 wrote: »

Whilst you are correct with your statement, this is scaremongoring.

How can something that is correct be scaremongering?