appointing directors

**Nixon Williams** · 26 October 2010, 16:44

Originally posted by wallop79 View Post

my now ex partner has recently appointed his two sons and his girlfriend as directors of his business, he has run his company for 24 years as a sole trader & made it a ltd comp. November 09, he appointed the directors in Aug 10, what benefit is there to him to appoint other directors, is this some kind of a "tax fiddle" , could he have appointed new directors to somehow "hide" his money?? (he is a multi millionaire & there is a bitter dispute between him, me & the csa ongoing at the moment) any suggestions gratefully acknowledge thank you

(all the newly appointed directors do not work for the company, or have any involvment with it, they all have full time jobs elsewhere)

Simply appinting someone as a director does not really help to "hide" any money. If he paid them a salary and provided a benefits he could get rid of funds.

The main thing to watch is if there has been a transfer of shares or if new shares have been issued. This enables dividends to be paid and of course if the company is worth anything, this could be a substantial transfer of assets.

I would imagine your solicitor will be able to deal with this.

**TykeMerc** · 26 October 2010, 21:25

It sounds like he's going to distribute shares to these people then declare a massive dividend to empty the company coffers so you can't claim the money.

However since you're already in dispute I suspect the courts would see it as a cynical move and hopefully include the dividend values in the real value of the company.

It's a matter for your solicitors to advise on really as posters here are only able to speculate.