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Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Is the business currently insolvent? Does it have any assets - if so what will happen to the assets when it folds? Do you have a shareholders agreement?
Hi, Thank you. Does it not have good will or a trading name etc? If the company did close would you start a new company? Kind regards AJ
Hi, Thank you. The main risk you face now is if the company is still trading while you know it is insolvent. If the company does trade while you know it is insolvent and you are a director of the company potentially you could be liable to contribute to the assets of the company personally. DO you actually want the company to keep trading?
Hi, Thank you. Would you be prepared to accept responsibility for the VAT invoice if you owned the whole company?
Hi, Thank you. Have you proposed he transfers the shares to you at par/nominal value and in return you will take responsibility for dealing with HMRC and the company VAT liability?
Hi, Thank you. You cannot force him to sell his shares - if removing his "loan" from the company makes the company worthless then it seems pointless paying him money for the shares. Is there any possibility that you can get him to accept an independent valuation for the shares?
Hi, Thank you. Why don't you propose allowing the company accountant to independently value it, and both commit to accepting the valuation?
Hi, Thank you. You can use any accountant that would be prepared to do it. For the process to work you would need an independent valuation. Would you be prepared to pay anything for the shares or is it not worth it? Kind regards AJ
Hi, Thank you. I would then just get as much information as you can about the business and leave - make sure you have the accounts information so you can answer any questions if the company goes into liquidation. Ultimately you do not want to be in a position where you have to accept personal liability for the company debts. Are you a director of the company?
Hi thank you. The risk you face is incurring personal liability under the Insolvency Act. I suspect if the company goes into liquidation the HMRC and the liquidator will want to know why this individual withdrew £30k. Can you keep copies of the accounts to show you did not touch this money?