Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Company director

crawleygirlcrawleygirl Just JoinedRegistered Posts: 4
Hello i really need some advice and wondered if anyone could help me. My husband is currently employed by a local building firm, however he was called into a meeting today and advised of the companies financial difficulties. The company owner has asked my husband and two other employees to become directors in a brand new company in which he would be the shareholder. Does anyone know the benefits this would give my husband as i can only find details on responcilbilities and duties on all the websites i look at. Please has anyone got any advice

Comments

  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    This sounds potentially like a 'phoenix' company, where one company is wound up because of financial difficulties and a brand new company is opened.

    I can't comment on whether or not your husband should or should not accept appointment as director/shareholder as I am unaware of the underlying circumstances. However, what I would recommend is to proceed with caution. It isn't clear from your posting whether or not the current director is going to be a party to the new company and if a company is forced to close because of trading or cash flow difficulties, starting up a new company doing exactly the same type of activity (which usually happens in a matter of hours) is just repeating the nightmare. I would advise your husband to seek independent, professional advice before making any decisions.

    Kind regards
    Steve
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Hi,

    I would back up what Steve says, proceed with caution and take independent advice as to go ahead blind could jeopardise your personal assets:thumbdown:

    I am aware of this happening where the veil of incorporation was lifted

    Poodle
Sign In or Register to comment.