Furlough for existing employees - Insolvency and Director dispute

VictoriaLRTFP

We are a small company with 7 employees and 2 Directors (each 50% Shareholders).  There is a depute between directors who have equal share (50% ownership).  One director is demanding that the employees are made redundant and I am requesting that we make them furlough.  
The other director partitioned the court for winding up on the 13th March 2020 on the basis that each director would continue with their part of the business (phoenix- sales/Service) and staff would effectively be TUPE'd over to the 2 companies emerging.  The other director, unknowingly to myself set up a new business in his wife's name in October 2020 to compete with the existing business.  The other director is now working through his wife's new business with 3 previous employees from the existing business.  The original company was thought to be insolvent on 23rd March, but work had already become impossible because of Coronavirus.  These employees will be offered jobs in the emerging new business when we can go back to work and would have been had CV not hit.  I believe these employees should be furloughed on the PAYE scheme of the original business (as they were on that payroll on 28.03) from the date they could not work due to CV and then offered employment with the new Co's once the partial lockdown is lifted. The other Director thinks they should all be made redundant.  They have jobs waiting when the lockdown is lifted.

I am finding it difficult to go against the demands of my business partner, however I believe I am obliged to take the governments advice to continue to pay the employees and claim for their wages through the Job Retention Scheme. This is made more complicated by the fact that we believe the company to be insolvent.
I would be very grateful of any advice to help understand how to ensure the best interest of our employees is met.
I have sought advice from accountants, solicitors the insolvency company and HMRC but none are certain of the correct position. I have not received any advice to assure me that I am doing the correct thing under the guidelines given by the government. 

For information, the existing company has minimal debts, no loans and only the current requirements to pay the employees. There is just enough funds to pay staff until the monies are reimbursed by government grants.

Jeremy535897

This is really far too complex a question for this forum. You need proper legal advice.