Bankruptcy and transferring shares

Jon12345

There is a Ltd company with one shareholder, who holds one share that was assigned when the company was created. That person was also the director.

One year later, that person is no longer a directory but is still the only shareholder.

This shareholder wants to transfer their shares to someone else and then go bankrupt. Are there any implications from this? I ask because this thread suggests there might be:

http://www.startups.co.uk/Forums/ShowPost.aspx?PostID=143492

I am not sure if James Smith is referring to if they try to transfer shares AFTER they have gone bankrupt, or before since he hasn't replied yet. And this has become very time critical since the person wants to go bankrupt on Thursday, before her holiday.

Can some kind soul help me out please?

Thanks,

Jon

CCCS_Matthew

My advice would to be to contact the Insolvancy Helpline on 0207 291 6895.

Without probing further I'm afraid I can't give you indepth advice regarding the matter, and as you mention time is critical, the above number will be able to discuss where you stand with this matter

Good luck

CCCS

Dr_Hook

You'd have to be very careful with this and definitely seek professional legal advice before proceeding.

If the idea is to transfer the shares for less than they're worth in order to put the company outside of the bankruptcy estate, this is a definite no-no. Basically it constitutes a voidable transaction under bankruptcy and the OR/trustee has the power to reverse it, and it'll probably earn the bankrupt a restriction order/undertaking for their trouble.

Jon12345

Do I seek advice from a solicitor or an accountant?

tigerfeet2006

Ring the Insolvency Helpline as per CCCS Matthew's advice.

Also pop this in the Bankruptcy and Dealing with it sub board.