What happens to Company Directors shares in bankruptcy

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Underpressure

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I am a company owner and director that is seriously considering bankruptcy and would really appreciate any advice

The reason I am considering bankruptcy is because I was a sole trader for 10 years and lost a lot of money from 2009 to 2012and have ended up in a mess with a few banks that are putting lots of pressure on me for years and I just can't take it anymore and need a fresh start

I own a small ltd company and its shares , The company is not really worth anything but is solvent and trading and earns me a very small wage

I am wondering what will happen the company when I go bankrupt , I will be resigning as director before I apply for bankruptcy as I can't be a director during bankruptcy but I am not sure what happens to my shares in the company or if the company will have to be wound down

What approach does the official assignee take regarding being a shareholder and the shares in the company

Any advice would be much appreciated
 
You have 2 options:

Do not sell the shares and go bankrupt. The Official Assignee will then try and sell your shares if they have value. This can be a cumbersome expensive process, with accountants carrying out valuations, solicitors drafting agreements. In some cases the OA will decide that the shares have no material realisable value.

Sell the shares now and then go bankrupt. The OA will investigate whether you obtained market value for the shares etc, and look for the proceeds of sale.

Jim Stafford
 
A small company not earning very much has a very low or no market value in reality.

I think its likely that the OA will approach this small income as being part of your livelihood and it will come into the overall calculation for a payments order if that's appropriate in your case.
If you're under the threshold for reasonable living costs and the company has no significant assets, I wager that he will ignore it.
 
Jim Stafford said:
You have 2 options:

Do not sell the shares and go bankrupt. The Official Assignee will then try and sell your shares if they have value. This can be a cumbersome expensive process, with accountants carrying out valuations, solicitors drafting agreements. In some cases the OA will decide that the shares have no material realisable value.

Sell the shares now and then go bankrupt. The OA will investigate whether you obtained market value for the shares etc, and look for the proceeds of sale.

Jim Stafford
Click to expand...

Dr.Debt said:
A small company not earning very much has a very low or no market value in reality.

I think its likely that the OA will approach this small income as being part of your livelihood and it will come into the overall calculation for a payments order if that's appropriate in your case.
If you're under the threshold for reasonable living costs and the company has no significant assets, I wager that he will ignore it.
Click to expand...


Thank you very much guys for the kind response

The company really is not worth money to anyone and has no real valueable assets worth talking about if it was liquidated , in fact it probably wouldn't have a net worth that would cover liquidation costs

I have had a letter served on me by hand from one the banks solicitors demanding payment in 14 days prior to the issue of a bankruptcy summons so I will probably let the bank go ahead and bankrupt me as I am hopelessly insolvent anyway and they would be doing me a favour at this stage if it draws a line and I can move on with my life

I am not sure if the letter is just a threat so if they don't proceed with a bankruptcy summons before January I will declare myself bankrupt
 
OP 'q' has not been answered..

Namely..
Underpressure said:
I am wondering what will happen the company when I go bankrupt
Click to expand...

So if one is obliged to resign as a company director prior to start of bankruptcy - and there are no other 'directors' - what happens to the company?

I might also add, if the OA requires the company to be sold - who is it that has to do this?

Sure, if it was just me - i'll sell it to a friend for a few bob - but keep running it etc..
 
In my situation a new director would be appointed when i resign but you raise some very valid questions breakonthru

I dont really want to sell or transfer the company shares to anyone prior to bankruptcy just in case the official assignee views it as moving assets so i will leave it alone and if they want to wind down or liquidate the company then thats fine by me

I really dont want to break any laws
 
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