Debtors chasing resigned director

I

Icarus

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I recently resigned my directorship of a company that is now effectively no longer trading. I was in partnership with a UK firm that was providing financial backing and controlling the companies cashflow. When I resigned there were outstanding debts and it seems that the two remaining UK directors have been dodging the debtors as they have been getting onto me demanding their money.
I will be taking legal advice on this but am wondering if anyone has had similar expereinces and how it worked out in the end.
 
you're nothing to do with that company and unless you have any personal guarantees in place not liable for the debts, however if you are still in the same business but with a different company i'd advise you to try and help the debtors by contacting the other directors otherwise your name might get tarnished. However dont reach into your pocket to pay them anything
 
Is there some company law that is making the directors more accountable for what happens in a company. don't know for sure if this would be an issue but I'd check it our.
 
Directors can be held personally liable for debts if they have acted fraudulently or if they continued to run up debts whilst the company was insolvent. were you a director of the actual company that is doding the debtors or were you just in partnership with that company?
 
I was a director of the company and also owned 1/3. My directorship is resigned but the directors haven't replied to any of my communication about selling them my 1/3 or dealing with any outstanding issues.

The reason I resigned from the company is that the other directors weren't fulfilling their obligations to the company. Their company in the UK ran into financial difficulties and they kept all the money I turned over here in Ireland to keep them going. They didn't pay any of the outstanding debts, which included my wages for over 3 months and also office rent etc. This was a nightmare as they're in the UK while I'm here trying to protect my reputation. So I resigned. I still operate in the same industry and am even trying to do deals with clients that are owed money. I have a feeling that it's going to get messy and that they are going to try and fold the company and avoid the debts. Even though I was in business with them I will side the debtors as the debts accrued were all from jobs that made money so they should be paid.
 
You do need to take legal advice on this. If the company was found to be trading while insolvent or if they diverted the company's money to pay other people, the directors will be made personally liable for the debts. I don't think that a recent resignation will absolve you.

Brendan
 
It's probably not what you want to hear but i have to agree with brendan - you need to take proper legal advice, not only to protect yourself from any potential liability but also to clarify your position as a shareholder. Your partners will be in no rush you buy you out if they are in financial difficulty, and even if they are prepared to buy you out is there any value on your share of the business if they company is insolvent?
 
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