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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37830
Experience:  Retired (mostly)
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I am ceasing trading tomorrow as director of a limited ...

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I am ceasing trading tomorrow as director of a limited liability company but some of the companies assets, in this case, sunbeds, will still be on the premises. Our rent is 3 months in advance so I assume that I can still enter the premises, but whose responsibility will the beds become? We may be able to get someone to take them but if there is going to be a cost, I am liable for it?

If you mean that you're ceasing business, and you still have assets, the LLC remains solely responsible for the assets, unless the members have accepted personal liability for the debts.

In either case, you have a fiduciary duty to the company to try to get some value for the beds, as as to pay down any debt. You may want to consider offering them to the lender in exchange for foregiveness of some of the debt.

Customer: replied 8 years ago.
Reply to socrateaser's Post: Hi, my wife and I are the only directors and the business has only one secured debt with the bamk which I am sorting out. My question was in relation to our landlord really. That is, are we liable for any costs involved in removing the assets from his premises if we cannot sell them?

Your liability to the landlord would be entirely based upon the lease terms and conditions. If it's not covered in the lease, then generally, if you damage the premises by removing trade fixtures, then the landlord could hold you liable. But, if you did not personally guarantee the lease, then the landlord can only hold the LLC liable, not you personally. That is, UNLESS your actions are wantonly reckless, or intentionally distructive, meaning outside the scope of employment by the LLC, then the landlord could come after you personally for the damage.


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