Director liability

Wingreen

I agreed to be a director of a limited company although took no part in it's running other than I worked for the company and received a wage. The company folded and the two other directors filed to close the company as it ceased trading. I have now received a letter from a debt collection company saying that there has been an "objection to striking off" and threatening me with court action unless I pay a £3000+ gas bill. I know nothing about it. I'm worried sick. Do I have to pay?

elsien

They will be chasing all three of you in the hope that one of you pays up. 

Whether you have any liability or not depends on the company set-up amongst other factors. 

Was it a limited company, or something else?

And in future never sign up to anything if you don’t understand the implications or there is no benefit to you. 

DullGreyGuy

Did you give a personal guarantee?

Wingreen

elsien said:

They will be chasing all three of you in the hope that one of you pays up. 

Whether you have any liability or not depends on the company set-up amongst other factors. 

Was it a limited company, or something else?

And in future never sign up to anything if you don’t understand the implications or there is no benefit to you. 

It was/is a limited company

Wingreen

DullGreyGuy said:

Did you give a personal guarantee?

Sorry to seem so ignorant, but I dont think so. I signed something (cant find the copy) because I wanted the job. 

lincroft1710

Wingreen said:

DullGreyGuy said:

Did you give a personal guarantee?

Sorry to seem so ignorant, but I dont think so. I signed something (cant find the copy) because I wanted the job. 

Let's hope whatever you signed didn't have a clause making you equally liable with your co-directors for any debts of the company.

elsien

Wingreen said:

DullGreyGuy said:

Did you give a personal guarantee?

Sorry to seem so ignorant, but I dont think so. I signed something (cant find the copy) because I wanted the job. 

Bear in mind that a debt collection letter in and of itself has no power - they are aiming to scare you into paying up.  So do not contact them and wait to see what they will do next. In the meantime, contact your fellow directors and check what they are planning to do about the debt - did/does the company still have assets that can be used to pay the bill? And get hold of a copy of what you signed because that personal guarantee bit is important.