A recent case shows that being a director is less about the title of your job with the company and more about the role you assume.

The case involved an insolvent company that ran bars and restaurants in London. When it went into liquidation in 2014, the company had a deficiency in excess of £1 million, mainly in respect of unpaid PAYE, National Insurance Contributions and VAT liabilities.

Following an investigation by the Insolvency Service, it was concluded that the company had traded while insolvent and that a former director, who had resigned as a director in 2013, had been paid more than £250,000 before the company collapsed.

His son had remained as a director, but the report indicated that the father still acted as if he were a director and his formal resignation did not mean he had ceased to be a de facto director.

Both father and son were disqualified from acting as directors of UK companies for a total of more than eight years.

Says Leanne Schneider-Rose:

If your company is in trading difficulties, take advice promptly to protect your personal position.

If you require help or advice on Insolvency matters, please contact Leanne Schneider-Rose on 0121 698 2200.

 

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