# bankruptcy



## roygibv (31 May 2006)

What happens to me finacally if I declare my company bankrupt?


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## Guest107 (31 May 2006)

depends largely on personal guarantees you gave the bank or suppliers that may be called in.

also depends on whether you traded recklessly


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## roygibv (31 May 2006)

see below


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## roygibv (31 May 2006)

A friend started a company with another person 1 year ago. This person has not contributed to the company and is unwilling to sell their shares without a settlement or to buy them out, the settlement is ridiculously high (basically making it impossible for them to buy). Legally he cannot start another company because he was told that it is against the company’s act/law to do so. It is something to do with a director acting against the good will of the company. He said that he is allowed start another company but not in the same line of work. (I don't know if this is even true) 
He doesn't want to keep trading and putting money into this company if the person that is doing nothing is entitled to half of everything. This is why I would like to know what would happen if he liquidated the company or filled of bankruptcy.
Bit of a minefield I know but any advice would be warmly welcomed.
Roy


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## howareya (31 May 2006)

roygibv said:
			
		

> 2 pac
> This person has not contributed to the company and is unwilling to sell their shares without a settlement or to buy me out, the settlement is ridiculouslyhigh (basically making it impossible for me to buy). Roy


 
What if you let him buy you out and then set up your own company.  Obviously of he's not putting in the effort now then I can't see him making a real go of it on his own.   Cut your losses with him and then go on your own.


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## ClubMan (31 May 2006)

Please don't . I have merged the two separate threads together.


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## roygibv (31 May 2006)

If the person is unwilling to buy can my friend force the sale of shares or even forcibly give them away to the other party.


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## bond-007 (31 May 2006)

There is nothing to stop you from setting up another company provided you are not disqualified by a high court order.


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