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Buachaill, Lawyer
Category: Republic of Ireland Law
Satisfied Customers: 10539
Experience:  Barrister 17 years experience
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Ronan. I have a similar question to the one I have just

Customer Question

Hi Ronan. I have a similar question to the one I have just read. My husband and I ran a Private Limited Company together for the last 15 years, both directors and both shareholders(the only in the company). Last July our business was in difficulty regarding the ability to pay taxes due, although my husband was taking a lot of money out of the business that the business couldn't afford. We met with our accountant, my husband wanted to close the business but I wanted to make an effort to pay the tax due. We had another 2 years of a three year contract with BOC gases. The accountant sent a letter to Revenue on our behalf to ask if they would accept a payment of 25% then and further instalments for the rest. They refused and went straight to BOC gases for their money. BOC gases then terminated our contract. My husband proceeded to hide money(€13k) in our daughters bank account and then sacked our accountant saying he had no money to pay him. He has taken several vehicles from the business and is hiding them until he feels that he can sell them. He had written to a solicitor saying that he is suing a company which took over our contact with BOC as they have not paid him fully for helping them with the hand-over. In the letter to this solicitor he has said he had no money to liquidate the business and that no accountant would take on the liquidation process as there was no money to pay them. He has lied on so many levels I don't know where to start. He also put one of the company's vehicles in my daughters name to hide it(she was 16 at the time). Any advice? Regards, L
Submitted: 1 year ago.
Category: Republic of Ireland Law
Expert:  Buachaill replied 1 year ago.

1. Dear *****, I know you don't want to hear this, but the best option at this stage would seem to be to liquidate the company and close the business. As the contract with BOC has been lost, the business is obviously struggling as a going concern. There is the tax amount due to the revenue which your husband seems to have set his face against paying. You would be best appoint a liquidator and seek to reclaim the monies your husband has hidden as these will only give rise to some future liability if these are wrongfully removed from the company.

Expert:  Buachaill replied 1 year ago.

2. Unless there is likely to be an upturn in trading, there is little reason to keep the company going. Yourself and your husband are better off start a new company with whatever part of the business in profitable and then re-commence trading with whatever is left. I would also query whether it will be possible for you to be in business with your husband in future, should he continue lying to you and cheating the company. However, that is an issue which you must decide for yourself.

Expert:  Buachaill replied 1 year ago.

3. Please Rate the answer as unless you Rate the Answer your Expert receives no payment for answering your question.

Customer: replied 1 year ago.
Thank you for the reply. The only problem to this solution is that my husband will not go down the route of liquidation now as he is claiming that there is no money in the business to do this. He wants to get the business "struck off" and he is, and always was, controlling all the company's finances. I believe this can lead to penalties.
Regards, L
Expert:  Buachaill replied 1 year ago.

4. Yes, there are potential penalties if a company is struck off. However, if you, personally, resign as a director, then you will not be subject to penalties. You can retain your shareholding which is your ownership interest, but you would not be involved in the running of the company. Be aware that normally, there is only a potential fine if you are a director of a company struck off. It is at the lower end of the scale.