Company continues to trade without filing a return

An Irish company I'm a shareholder in is continuing to trade without filing a return (Over 6 months late).
I'm in the dark regarding the profitability of the company but believe it's probably close to insolvent or trading recklessly.

It's well over a year since I resigned as a director of the company.

One of the company's creditors is the bank and I have a guarantee signed for some credit given to the company 2 years ago.
I invested approximately 50K and very much want to recoup this back.

The 2 current directors send me occasionally (every 6 months) a cash flow sheet.

My hope is they'll trade out of it but the overdue return is a big worry.

Any suggestions please?

The good news is that if the company goes into liquidation now you could not be restricted or disqualified, as you will not have been a director within 12 months of the liquidation date.

Companies are regularly late with their returns to CRO. A late return means that the accounts will now have to be audited, which should provide you with some assurance as to their accuracy.

The directors are obliged to hold an AGM of shareholders. You could write to the directors and say that unless they hold the AGM within, say, 4 weeks, that you will make a formal complaint to ODCE.

Given that you are no longer a director of the company you should try and exit any PG you have given.

Jim Stafford

Thanks for that Jim

are you party to a shareholders agreement
formally drawn and witnessed by a solicitor...

Yes there's a shareholder's agreement drawn and witnessed by a solicitor.

siofra1 said:

Yes there's a shareholder's agreement drawn and witnessed by a solicitor.

Click to expand...

Then read the agreement it should help guide you and definitely contact the Bank about cancelling your guarantee, get the guarantee back in your hands, do not assume it has been cancelled, you need to get it back, the Bank may ask the Durectirs for alternative security, if you cannot cancel the PG then you need to speak to the Directors urgently.

The cash flows provided should also help you and you can download last years accounts from CRO.IE.

Do not put this on the long finger or you are likely to lose out, time for action.