How to enforce a charging order on shares

Savvy_Sue

mybestattempt said:

I've read your earlier threads for background.

It seems the company ceased trading during 2023 and it's trade including any assets/equipment it had were acquired by what is now a sole trader operation.

The company is now dormant and while it is it won't be declaring any dividends.

A charging order made now to entitle you to future dividends will not be effective so long as the company remains dormant.

Also, if the company is dormant it won't be submitting tax returns to HMRC.

I've also had a look at previous threads. In one of them you were concerned about whether someone operating as a sole trader in the same line of work as his ltd company was breaking the law. You were told quite clearly that he was not. https://forums.moneysavingexpert.com/discussion/6560236/sole-trader-carries-out-same-activity-as-his-limited-company/

Your claim is against the ltd company. Assuming this is the same company / individual, he has found a way of NOT paying you what has been ordered and disposing of his assets. 

autoplay said:

This company is not dormant because no accounts for a dormant have been filed to the Companies House

The disappearance of the assets could not be due to depreciation because they all disappeared in one year i.e. the year between 2022 and 2023

This company is still running with clients and a website

I am still puzzled by the disappearance of these assets

You can be as puzzled as you like, but I believe several responses have already indicated to you what has most likely happened. I have not seen anyone suggest that you have any way forward. 

 Now, if you can find a good solicitor with expertise in this area, and you pay for 'proper' advice, and find anything different, please come back and tell us. Or it might be a forensic accountant that you need. But I am not sure whether you have any right to the information you will need to establish exactly what has happened. And even if you do, I am not sure you are going to receive what you feel you are owed - because it is the ltd co which 'owes' you, and that has no assets. 

penners324

From the snippet you've posted there's £12k in assets and £12k in liabilities in 2022. 2023 indicates the the liabilities have been cleared by those assets.

uknick

autoplay said:

The notes does not say why the assets were disposed. In the previous Balance Sheet it is stated that for the year 2021 the value were also 100 as for the year 2023

So, it does show the movement as -ve additions, i.e. disposals?  I mentioned the notes as you said it couldn't be depreciation and the notes would confirm that.

I'll ask again, as drip feeding information is really prolonging this thread, give us the company number and we can get a proper view of the company's history over the years and possibly identify if there have been abnormal changes in the last year or so in an attempt to stop you getting what you think you are owed.   

Undervalued

uknick said:

I'll say again, if they are a SME they can submit abridged accounts; only the balance sheet and associated notes.  Do they meet the requirements of an SME?

"Your company will be ‘small’ if it has any 2 of the following:

a turnover of £10.2 million or less

£5.1 million or less on its balance sheet

50 employees or less

If your company is small, you can:

use the exemption so your company’s accounts do not need to be audited

choose whether or not to send a copy of the director’s report and profit and loss account to Companies House

send abridged accounts to Companies House"

Why assume they have distributable profits?  What does the balance sheet show year on year? 

Exactly.

It is rare to see anything more than a balance sheet on CH for any "small" limited company. Small is a (very) relative term!

Hoenir

autoplay said:

I am still puzzled by the disappearance of these assets

The Directors of the Company can do as they wish with the unencumbered assets of the Company. A shareholder's only entitlement is to the nominal value of equity that they've invested. In this case it appears to be £100 of £1 nominal ordinary shares. Your charge is over the shares nothing else. To secure anything more you'd need a fixed and floating debenture over the entire Company.  

I'd suggest that advice has been sought and a legimate course of action undertaken. At the moment your only asset is £100.