Debt with Ltd company

[Fred]

I am owed a substantial sum of money from a Ltd company.

The sole director seems not to take a active role in this company. It seems
only the company secretary has access to the bank accounts. The company
secretary has moved abroad but is still running the company with a just one
employee in the UK. Strange setup but true.

Essentially I am concerned through the lack of any communication, or what
few replies I have had, to all 3 people that I will ever be paid. More's
the point I am wondering if there are sufficient funds to pay me with a
worsening prospect as times goes on from anecdotal evidence that their
market is shrinking.

I could go for a Money Claim Online but feel their procrastination will
inevitably delay any likelihood of payment for some time. I need something
far quicker and ideally without notice and without time for accounts to be
emptied.

Can anyone help?

 

[Doug Ramage]

I am owed a substantial sum of money from a Ltd company.

The sole director seems not to take a active role in this company. It seems
only the company secretary has access to the bank accounts. The company
secretary has moved abroad but is still running the company with a just one
employee in the UK. Strange setup but true.

Essentially I am concerned through the lack of any communication, or what
few replies I have had, to all 3 people that I will ever be paid. More's
the point I am wondering if there are sufficient funds to pay me with a
worsening prospect as times goes on from anecdotal evidence that their
market is shrinking.

I could go for a Money Claim Online but feel their procrastination will
inevitably delay any likelihood of payment for some time. I need something
far quicker and ideally without notice and without time for accounts to be
emptied.

Can anyone help?

It may be that Company Secretary is now a "shadow director" - which, if the
company trades while insolvent, might render him personally liable?

 

[fred]

I am owed a substantial sum of money from a Ltd company.

The sole director seems not to take a active role in this company. It seems
only the company secretary has access to the bank accounts. The company
secretary has moved abroad but is still running the company with a just one
employee in the UK. Strange setup but true.

Essentially I am concerned through the lack of any communication, or what
few replies I have had, to all 3 people that I will ever be paid. More's
the point I am wondering if there are sufficient funds to pay me with a
worsening prospect as times goes on from anecdotal evidence that their
market is shrinking.

I could go for a Money Claim Online but feel their procrastination will
inevitably delay any likelihood of payment for some time. I need something
far quicker and ideally without notice and without time for accounts to be
emptied.

Can anyone help?

In your position I would visit the companies house website and obtain a
copy of their last filed accounts to see if there is likely to be enough
money in the company to pay you. Search from:
http://ws2info.companieshouse.gov.uk/info/ then click 'order' to display
which documents are available. Last accounts plus last return cost only a
fiver so not much of a loss there. Bear in mind that they may be up to a
year out of date.

As you mention money claims on-line I am assuming that the amount is
under 5000 pounds and that you are intending to use the small claims
track. Whilst it can take a long time to get a judgement (8months in my
case) it can be very satisfying when it all comes together and I would
heartily recommend it at a way of obtaining closure on a bad experience.

My amount was C 2500 pounds, obtained in full. Time wasting by the
defendant and ignoring correspondence had no effect as the court would
have none of it.

As for quick and dirty, I have no suggestions.

 

[Andrew McGee]

In your position I would visit the companies house website and obtain a
copy of their last filed accounts to see if there is likely to be enough
money in the company to pay you. Search from:
http://ws2info.companieshouse.gov.uk/info/ then click 'order' to display
which documents are available. Last accounts plus last return cost only a
fiver so not much of a loss there. Bear in mind that they may be up to a
year out of date.

As you mention money claims on-line I am assuming that the amount is
under 5000 pounds and that you are intending to use the small claims
track. Whilst it can take a long time to get a judgement (8months in my
case) it can be very satisfying when it all comes together and I would
heartily recommend it at a way of obtaining closure on a bad experience.

My amount was C 2500 pounds, obtained in full. Time wasting by the
defendant and ignoring correspondence had no effect as the court would
have none of it.

As for quick and dirty, I have no suggestions.

Threaten a winding-up petition unless they pay in 7 days.

Its a limited co, so a stat demand is not required.

Andrew McGee

 

[Fred]

It may be that Company Secretary is now a "shadow director" - which, if the
company trades while insolvent, might render him personally liable?

The trouble he has moved abroad and whilst as you say he may be personally
liable doubt the sort of sums involved would warrant chasing him around
Europe.

 

[Johnjo]

Threaten a winding-up petition unless they pay in 7 days.

Its a limited co, so a stat demand is not required.

Andrew McGee

True but unwise. There are two golden rules in debt collection.

1. Don't delay. The older a debt is, the less likely you are to get paid.

2. NEVER make a threat that you aren't prepared to carry out. It destroys
all your credibility. To issue a winding up Petition is very expensive,
complicated and usually does not result in getting paid.

A third rule is check carefully before giving credit. I suspect that this
debt is dead money now but if you want to pursue it, then start by searching
at Companies House, and also at the Registry Trust to see if the Company has
any judgements against it.

See http://www.registry-trust.org.uk

Good luck

JJ

Some useful advice for the future can be obtained here

http://www.payontime.co.uk/collect/collect_creditworthy2.html

 

[Fred]

Threaten a winding-up petition unless they pay in 7 days.

Its a limited co, so a stat demand is not required.

Andrew McGee

Just been looking up about winding up orders. Is this something I can do
myself or would I require a solicitor to do this?

What sort of cost is involved here and the pitfalls in this method?

 

[fred]

The trouble he has moved abroad and whilst as you say he may be personally
liable doubt the sort of sums involved would warrant chasing him around
Europe.

Chase the company, not the director, that is where the debt lies. It has a
registered address in this country, use that and don't worry about where
the director has moved to. Even if he is no longer with the company, the
debt is with the company.

 

[Fred]

Chase the company, not the director, that is where the debt lies. It has a
registered address in this country, use that and don't worry about where
the director has moved to. Even if he is no longer with the company, the
debt is with the company.

Many thanks. It's the comp sec who has moved and the sole director is an
old acquaintance of mine. I agree with you and anything served will be
served at the registered address which is in this country and is the
employees' address. The comp sec is still with the company and has a hold
on the purse strings. The director doesn't appear to have the inclination
in getting involved or is frightened of the comp sec despite being the one
ultimately responsible!

 

[Fred]

only


1. Don't delay. The older a debt is, the less likely you are to get paid.

2. NEVER make a threat that you aren't prepared to carry out. It destroys
all your credibility. To issue a winding up Petition is very expensive,
complicated and usually does not result in getting paid.

A third rule is check carefully before giving credit. I suspect that this
debt is dead money now but if you want to pursue it, then start by searching
at Companies House, and also at the Registry Trust to see if the Company has
any judgements against it.

See http://www.registry-trust.org.uk

Good luck

JJ

Some useful advice for the future can be obtained here

http://www.payontime.co.uk/collect/collect_creditworthy2.html

Stable door and bolt come to mind!

The employee and director were acquaintances of mine who I would normally
have trusted.

Credit is an interesting subject but without it it's very difficult to sell
without giving credit.

The company is a new one without any records at company house yet.

I thought the Registry Trust only recorded judgements which were not
satisfied within the requisite 14 days or so?

What's the typical cost of a winding up petition? It sounds a relatively
simple procedure.

 

[Matthew Levy]

This sounds like a similar situation to myself and I was wondering if
anybody else can offer me any advice regarding race. A client of mine
currently those made £2,000. I have issued a statuatry demand (form 6.1) to
the client with a bit of help from the debt recovery agent. The way the
person I explained it to me is that he has 21 days in which he must pay the
full amount otherwise we can take out insolvency proceedings Is this true or
can he contest this without having to go through the courts?

mat

 

[Peter Saxton]

This sounds like a similar situation to myself and I was wondering if
anybody else can offer me any advice regarding race. A client of mine
currently those made £2,000. I have issued a statuatry demand (form 6.1) to
the client with a bit of help from the debt recovery agent. The way the
person I explained it to me is that he has 21 days in which he must pay the
full amount otherwise we can take out insolvency proceedings Is this true or
can he contest this without having to go through the courts?

mat

I must admit that half of the above is gibberish. What do the first
two sentences mean?

Everyone says how easy it is but once when I went to a solicitor about
taking one out I was told that it would get rejected unless the debt
had been proved through a court case. Nowhere have I seen this
mentioned before and maybe the solicitor was talking rubbish.

 

[Doug Ramage]

I must admit that half of the above is gibberish. What do the first
two sentences mean?

Everyone says how easy it is but once when I went to a solicitor about
taking one out I was told that it would get rejected unless the debt
had been proved through a court case. Nowhere have I seen this
mentioned before and maybe the solicitor was talking rubbish.

There is no need to have a CCJ before issuing a Statutory Demand, but one
runs the risk of the "alleged" debtor having it set aside, especially if
there is a dispute over the debt itself.

 

[Rhoy the Bhoy]

[snip]

There is no need to have a CCJ before issuing a Statutory Demand, but one
runs the risk of the "alleged" debtor having it set aside, especially if
there is a dispute over the debt itself.

If there is a bona fide dispute, the statutory demand will not by
itself lead to insolvency