Appointing a new director

Wrenchie

Hi all, was hoping to get some more advice from you guys.

I have a client who is the sole director of a limited company. A couple of months ago he suffered a serious stroke which has left him with some paralysis and as such is unable to sign the accounts. The accounts need to be filed by the end of November. I have just spoken to Companies House who stated that the only way the accounts can be filed is if the company appoints a new director who can sign.

The company has some debts in the way of a bank loan and HP which is personally secured by the director. The director also has some serious personal debt which has just come to light. The company will probably have to go into liquidation and the director is facing bankruptcy. Will the new appointed director have any financial risk?

Any advice gladly taken, I don't come across these situations very often!!

farmergiles

Wrenchie wrote: »

Hi all, was hoping to get some more advice from you guys.

I have a client who is the sole director of a limited company. A couple of months ago he suffered a serious stroke which has left him with some paralysis and as such is unable to sign the accounts. The accounts need to be filed by the end of November. I have just spoken to Companies House who stated that the only way the accounts can be filed is if the company appoints a new director who can sign.

The company has some debts in the way of a bank loan and HP which is personally secured by the director. The director also has some serious personal debt which has just come to light. The company will probably have to go into liquidation and the director is facing bankruptcy. Will the new appointed director have any financial risk?

Any advice gladly taken, I don't come across these situations very often!!

Any new director would not need to be liable for any financial risk per sai but the revenue could say that as a director they are liable for any company debts if they have become a director knowing the state of the company. the loan and hp will remain the responsibilty of the old director because he personally guaranteed them.
If the company is going into liquidation then why worry, it obviously cannot pay any fine imposed by Co Hse. Are there sufficient funds to support a liquidator taking over the company? If not, then just shut it down, stating that it cannot fund it's own liquidation. The personal bankruptcy will only affect the company i that the director will have to resign, you cannot be a director if you are an undischarged bankrupt.

Kind regards
Peter

Wrenchie

Thanks Peter!