Reply to: Limited / self employed

[Let-Me-In]

21:31

[Rantor]

Your spot on, i have been niave and could have done a lot more from the start to prevent this from happening, however, if i am liable if things go pearshaped then surely i have some rights to try and stop this from going any further, i could still save this business, it is viable, just not with him.

There is another partner who we were in the process of buying out, however, the Director has spent the money we raised for that, i was supposed to take my shares from that transaction. Maybe i should speak to him.

Sorry if this sounds a bit mickey mouse, its all come as a bit of a shock and i wanted to know my options and extend the search to you fine folk.

I would like to get him out, and i would like to do it legally and properly!!

A job for Strutter Direct if ever I heard of one.

Seriously, look out for yourself - if they have been on the make using the company of which you are a director then this could be a problem.

[r0bly0ns]

You can't be "a managing director" - you are THE managing director of your company.

A couple companies I have done work for have had more than one managing director, this is unusual but not unheard of.

Although it could have been a micky mouse job title......

[blache]

Your spot on, i have been niave and could have done a lot more from the start to prevent this from happening, however, if i am liable if things go pearshaped then surely i have some rights to try and stop this from going any further, i could still save this business, it is viable, just not with him.

There is another partner who we were in the process of buying out, however, the Director has spent the money we raised for that, i was supposed to take my shares from that transaction. Maybe i should speak to him.

Sorry if this sounds a bit mickey mouse, its all come as a bit of a shock and i wanted to know my options and extend the search to you fine folk.

I would like to get him out, and i would like to do it legally and properly!!

[Ardesco]

Sounds like your hard work is already going up in flames....

There is a time when you have to accept that the only way forward is to draw a line under the past, salvage what you can and then move on.

[blache]

and see all my hard work go up in flames, thanks for responding though.

Horse walks into a bar with a set of jumpleads, barman says "i can deal with the long face but i don't want you starting anything".

guess i need to go to a legal site!!

Cheers

[VectraMan]

he is the majority share holder and i have not taken shares through worry of being liable if/when it goes down the tubes.

You don't have any shares? What do you get out of this?

As a director you're potentially liable, shareholder or not. Ignorance is no defence, you should have been keeping a closer eye on the company. You'd be better off being a shareholder and not a director.

Reading between the lines, is this another husband and wife / no need for formality as we'll never split up / tulip hits the fan when we do story? Sounds a bit like it.

[TheFaQQer]

You can't be "a managing director" - you are THE managing director of your company.

Here's my action plan:

• Cancel the credit card
• Cancel any bank authorisation he may have
• Get a new company - quickly!
• Invoice from the new company to the old company for as much money as you can get out of the company. You will need to pay VAT on this, but you will at least get something out.
• Resign from the old company once you've taken the money to your new one.
• Call HMRC and point out that there are some accounting irregularities.

If he is the only shareholder (why???), then he can call an EGM and have you removed as MD, with nothing you can do about it, so the quicker you can get your money out of there into somewhere else, the better.

If I didn't know better, I'd suggest that this was a fake post, but I'm cynical like that...

[Bluebird]

It is a small company, i have put a huge amount of work into it and i have just found out that not all is what it seems, holidays,beer tabs,shopping,rent on houses,vodafone top ups for friends, £500 a night hotel bills going through a company credit card which i thought was dorment. I seem to be making the money and he is driving the business into the ground, he is the majority share holder and i have not taken shares through worry of being liable if/when it goes down the tubes.

Not sure whether anyone can help, i have seen some good advice on here through my google searches.

my advice would be to set up your own ltd co.
resign as director and employee.
either negotiate with the agency / client who you work for or else get another gig.

[blache]

It would be a very small meeting

It is a small company, i have put a huge amount of work into it and i have just found out that not all is what it seems, holidays,beer tabs,shopping,rent on houses,vodafone top ups for friends, £500 a night hotel bills going through a company credit card which i thought was dorment. I seem to be making the money and he is driving the business into the ground, he is the majority share holder and i have not taken shares through worry of being liable if/when it goes down the tubes.

Not sure whether anyone can help, i have seen some good advice on here through my google searches.

[Bluebird]

Hi, i have just joined the forum, i am desperate to ask a question, i am a managing director of a limited company and believe that my director is acting against the company's best interests.
I don't seem to be able to start a new stream. can anyone help?

I would guess you need to call an extraordinary general meeting and get them kicked out as a director.

[blache]

I would like to ask a question

Hi, i have just joined the forum, i am desperate to ask a question, i am a managing director of a limited company and believe that my director is acting against the company's best interests.
I don't seem to be able to start a new stream. can anyone help?

[TheFaQQer]

Not actually true, you can (in theory) be personally sued for negligence.

True, but the burden of proof that the individual rather than the company should be penalised is harder, I believe.

Being sued for breach of contract would have to be to sue the company rather than the individual though.

[xoggoth]

Not actually true, you can (in theory) be personally sued for negligence.

[TheFaQQer]

Hey

My first contract starts in one month, and I am looking at how to deal with it. All the information concerns setting up as a Limited Company..... can anyone explain in simple easy terms for me what the difference between this and just 'going self-employed' is please?

As far as I can see it links in with IR35? If you are self employed you should be able to demonstrate that you provide services for multiple clients? I know the same is true as a Limited Company, and this is why I get confused!

Any answers would be greatfully received
Thanks, Tim

Agents won't deal with you if you are self-employed. If you are going direct then you can do it, though. Main reason is that if you don't pay your taxes, the next entity in the chain can get clobbered for them, i.e. the agency.

If you are a Limited company, then your liability is limited. If you get sued for negligence (for example), then if it puts your company out of business, the only thing they can go after is your company assets. If you are not limited, then it is you personally that can be targeted, so you could lose your home, property etc. etc. and be personally bankrupt.

Limited or umbrella is the only way to do it really - of the two, limited would be the recommendation of most people on here.