Hi,I have a client who is a director of a dormant company. The other director (not a client) was made bankrupt on 05/10/11. Nothing has happened to the company since. Is the bankrupt director still allowed to be a director and if not who's responsibility is it to remove him?RegardsHannah
Hi,Thank you for your question.Un discharged bankrupts are prohibited from being Company directors.The other director can remove then from Companies House but best practice would be to record the removal as a shareholder resolution.Kind regardsAJ
2 Years Insolvency Litigation
What about if the bankrupt director is also a 50% shareholder?
Hi,An un discharged bankrupt still cannot be a director of a Company.If he continues you to act he could potentially receive a Director Disqualification. It needs to be explained to him that it is in his own interest to step down until he is discharged.Also those 50% shares will no longer belong to him, they will vest in his trustee in bankruptcy. The 50% shareholder should try and acquire them from his estate in bankruptcy.Kind regardsAJ
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