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resigning a directorship

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    resigning a directorship

    Hi,

    I have been running a small shared contracting business (2 contractors) in the IT finance sector for the last 10 years.

    I've just discovered this evening that my business partner resigned her directorship over a year ago, but never told me. (Her husband did the same with his position as company secretary.) I only discovered this through a cursory glance at our company history at Companies House. The same search showed me that she has also signed off a set of company accounts using my name as the director.

    I've just about picked my jaw up off the floor. Putting aside how disfunctional this all is, what is the legal position? Surely a director must inform his or her fellow director(s) when resigning? The company address remains her address, so if anything were sent in written form as a formality to the company address then it wouldn't have arrived to me (obviously).

    Regards
    greene

    #2
    Originally posted by greene View Post
    I've just discovered this evening that my business partner resigned her directorship over a year ago, but never told me. (Her husband did the same with his position as company secretary.) I only discovered this through a cursory glance at our company history at Companies House. The same search showed me that she has also signed off a set of company accounts using my name as the director.
    You don't need advice on an Internet forum, you need legal advice.

    Are there funds in the company? Were the accounts accurate? Were they signed off before or after she resigned? Does the company have an accountant, and does the accountant know about all this?

    I'd be looking to close the company and open a new one as soon as practical, personally.

    Comment


      #3
      Have you still been paying dividends to the ex director after resignation?

      I'd be straight on to your accountant as well. Your finances will be in a horrible mess as well if you have.

      You'd imagine there is something nefarious about this so swift and firm action is needed so I'd say go straight to a lawyer as well.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by northernladuk View Post
        Have you still been paying dividends to the ex director after resignation?

        I'd be straight on to your accountant as well. Your finances will be in a horrible mess as well if you have.
        Director =/= Shareholder

        Comment


          #5
          Originally posted by pr1 View Post
          Director =/= Shareholder
          Very good point well made.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by greene View Post
            same search showed me that she has also signed off a set of company accounts using my name as the director.
            That there is out and out criminal fraud. The police should be your next phone call after your accountant. Some would say :
            Accountant, lawyer, then police and I wouldn't disagree strongly with that.
            Take yer pick, but get on it NOW.
            See You Next Tuesday

            Comment


              #7
              Originally posted by Lance View Post
              That there is out and out criminal fraud. The police should be your next phone call after your accountant. Some would say :
              Accountant, lawyer, then police and I wouldn't disagree strongly with that.
              Take yer pick, but get on it NOW.
              Don't forget bank if she has access to account.

              Comment


                #8
                that's a bit grim. Some good advice so far on the thread.

                Have you spoken to her since you discovered this?

                What are your week to week dealings through the year? Has she been active on a contract using the company? Maybe you thought she was, but she has her own company now opened a year ago.

                It immediately suggests something nefarious (or something missing from the story you haven't told us).

                Good luck!

                Comment


                  #9
                  Originally posted by greene View Post
                  I only discovered this through a cursory glance at our company history at Companies House. The same search showed me that she has also signed off a set of company accounts using my name as the director.
                  As an aside - you can follow companies on Companies House and they will automatically send you an update when anything changes. I follow my company just in case.
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                  Comment


                    #10
                    A phone call to the ICAEW regarding your accountant will also be necessary.

                    Comment

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