Liqudation - implications on directors

My husband has a limited company and I am a director of this company. Last year due to recession, none payment from customers, bounced cheques from customer, he got a paye job to pay the bills.

Since then I have been trying to get him to sort out the business, and close it down or see what our options are. He wont open mail, Im left to face creditors, deal with bank manager etc. I think he just thought he would get a job for a few months until things picked up.

I have been paying the busines loan trying to keep the bank happy and save our credit rating, but the revenue are after him now.

I am quite happy to help, but he just wont cooperate. I ask him for paperwork and it took him a total of 10 months to produce. I got fedup nagging. I ask him to come straight home from work to enable me to work in the office (as I have very young children and am heavily pregnant) he nevers honours any arrangement, someone elses is always more important.

The revenue are bringing him to court in 2 weeks, so I had arranged for him to take a day off work and start sorting things out. He disappeared into work for an hour at 6am and its 11am and no sign. Hes just not taking this seriously. Im a nervours wreak as even though its his business, Im a director and thus have a legal obligation.

Is there anyway I can get my name off this limited business?
I was told, a ltd company needed 2 directors, and thus sign here!!! now Im finding out the legal comeback!!

I dont think he would actually owe the revenue much when sorted, as he had RCT's which should cover it, but he does owe creditors and Im keeping the business loan paid out of his wage, on top of mortgage etc. We are flat broke.

I feel very vulnerable with his head in the sand and me 7 months pregnant and dependent on him finanically.

Where do we stand or any websites with info on liquidations, costs, voluntary / involuntary?

Im struggling on my own trying to sort his mess.
Regards
caz

Caz, that sounds like a incredibly stressful situation.
Your hubby has just stuck his head in the sand, hoping it will all go away.

My only advice, in the event that a severe talking to/major row doesn't bring him to his senses, is that you have to take it all over yourself.

Ring the revenue and ascertain the extent of the problem and negotiate a way out.
Get him to bring you all the paperwork...or the keys to his office. Stop nagging and start doing.

Is he hiding anything? Gambling debts etc etc.

No matter how bad things are you can work it out.
You still have a husband who is working, and you are working so that is a big plus. Maybe he is depressed and needs to talk to his doctor.

Hi Mommah,

Yes hes depressed. His way is avoidance so the doctor says, and told him he had to just face it, as he has plenty of support.

Im trying to sort it, but its very frustrating, he walks out of the room when I starting talking finances, everything is in a mess. I took the chequebook off him as to try and get his bank statements looking stable, but he took it back and wrote a cheque and bounced it, and then messed up several DD that I had covered. I told him not to use the credit card and took that off him, yet he managed to get that back and made 9 transactions and put us over the limited.

Ive lost all faith in him. The fact is he is a hard worker and good a what he does. I know hes had a hard time, with feckers not paying him, losing his business and then hes had 2 paycuts in 5 weeks, he has no confidence left.

I will find someone else to take the children while I try and sort out the mess. I have kept our personal finances sorted TG, by renegociating with mortgage and bank.

My own business is at a stand still because of this, and Im about to have another baby. My doctor is concerned as Ive heart palpitations and am suffering from depression, but wont take anything as Im pregnant.

Im in the office in between nappy changes and baby naps, while he hides in the pub.

Never again! Just worried that I have left myself opened legally. Worried Ill end up in jail for my husbands lack of responsibility.

Its a hard lesson to learn.
Cheers
Caz

Sorry to hear about how difficult things are; you are doing an amazing job in very trying circumstances.

From the sound of your posts, I believe that the Chinese wall between personal and company finances has been breached and they may be in the process of becoming inextricably tangled. I believe you need legal and financial advice.

Do you have a MABS near you? - http://www.mabs.ie/

Do you have access to a (free or cheap) book-keeper / accountant / office administrator to help you get the books in order and get a handle on the actual state of the financial affairs and prepare for Revenue? You need all the help and support you can get, but in the short-term it may need to be of a purely practical, professional nature to give you some breathing space.

Sorry to hear your prediciment and well done on getting this far. Speak to as many as you can and feel proud that your still continuing on. Revenue are very approachable and will try to get something payment plan etc to keep you going. Certainly contact mabs and maybe county enterprise board if theres any chance of restarting the business they may be able to give a mentor foc for a few meetings on accounts or business etc.
Legally afaik if the co is wound up and liquidated you may be disbarred from being a director again. aside from personal garuntees what if any effect would this have on you. a lot of people are in a similar situation or are not far away from it.
Take faith in that you are looking for soloutions and that in time this will be behind you too aside from all else look after your health. Imagine years away from now that you will have this behind you one way or the other. keep looking forward and well done for taking the steps you are taking at present.

Sorry to read this Cazmayo, to be honest it sounds to me that your husband is depressed and needs help is this regard, he is only avoiding it because he cannot cope and is too proud to accept what is happening, its not that he is not taking it seriously its that he doesnt have a plan B and cant think about the situation at all. you guys really need to sort yourselves out first before even worrying about the revenue or the creditors.

The very best of luck with it

I agree that you need to sort yourselves out first. Easier said than done - you need to disentangle the business from the personal which is very hard.

Have you approached Revenue about the possibility of rescheduling the debt or just ignored the correspondence. I also find Revenue very accomodating when people are upfront, in fairness.

Do you have an Accountant who could tell you where you are.

Failing that, it should be easy enough if it is just a small business - list down what you have and then what you owe as well as to whom.

If you owe much more than you have then you cant go down the Voluntary Liquidation or strike off route.

Good luck with it and dont forget to post if you need anything further.

Dear Caz,

You are in a terrible position, and depression is a terrible thing. However, you have to be very careful about what you are doing. I know you are a director of the company but what kind of a director were you when the company was up and running?

If the revenue go forward and appoint a liquidator they will be hounding you? However, although there is no such thing a sleeping director if you could show that you have done all you can then you are safe enough.

I would be worried about your other business because if this company goes into liquidation you may be facing section 150 proceedings and be disqualified from acting as a director.

The CRO will not let you resign from being a director as the company needs 2 directors. However, if you were to right a letter to the company resigning and explaining why you are resigning ie the lack of support from other directors. The duty to appoint a second director falls on your husband! This may sound a bit viscous but I think you need to protect your other business!

i agree with previous posts about talking to the Revenue and they are usually very understanding. however, if the Revenue have passed this matter onto the liquidation section you may find them unhelpful. if the appoint a liquidator your home etc will be protected by the vale of incorporation as long as neither your or your company acted in a very dishonest way.