Freehold company bank account

gastroboy

Hi everyone.

I don't know if this is the right place for this so mods, please move if needed.

There are four leaseholders in our building and we are buying the freehold. We are in the process of setting up a bank account in the name of the freehold company. each leaseholder is a director. The bank (llyods) have said that setting up the account will link us.

Does anyone know what means? Does it link us to the Freehold Company? So if that goes bust it's on us, or does it mean that the four of us are linked personally. So if one has bad credit, the others get impacted even though it's through a separate freehold? The llyods lady didn't really know so any advice would be helpful.

Thanks

glentoran99

gastroboy wrote: »

Hi everyone.

I don't know if this is the right place for this so mods, please move if needed.

There are four leaseholders in our building and we are buying the freehold. We are in the process of setting up a bank account in the name of the freehold company. each leaseholder is a director. The bank (llyods) have said that setting up the account will link us.

Does anyone know what means? Does it link us to the Freehold Company? So if that goes bust it's on us, or does it mean that the four of us are linked personally. So if one has bad credit, the others get impacted even though it's through a separate freehold? The llyods lady didn't really know so any advice would be helpful.

Thanks

You will be financially linked for purposed of credit referencing etc

gastroboy

Does it have a major impact? If one director has a bad credit history, will it bring the rest of us down? Seems like a ridiculous result?

eskbanker

I could be wrong but can't see how there would be credit linkage between individuals purely on the basis of them being directors of the same company, although I'm assuming that it's a standalone limited company being set up rather than, say, a partnership.

OP, aren't you dealing with a professional adviser on this?

xylophone

The account should be in the name of the company - there will be a couple of signatories on the account?

gastroboy

Thanks all. yes, the account will be in the name of the company and the signatories will be the four directors. The lady at the bank said that the credit check on the directors to open the account will mean the four of us will be linked. Fine if it's only in relation to the limited company but it seems daft if the personal circumstance outside the ltd company sphere links us? That's the bit that is confusing everyone.