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Our family business is currently being closed down. It ceased trading over a year ago and we employed an Insolvency Practitioner to finalise everything. There are 4 directors (Mum & Dad, son & wife).
The relationship between son and parents had always been difficult and had been further breaking down for some time but some counselling sessions had started to open the son's eyes to the emotionally abusive relationship he was stuck in and he made the decision to leave the company which resulted in it ceasing to trade.
He noticed a large sum of money had been withdrawn from the bank account. His parents consistently refused to tell him what this sum was for. Some time later, the IP sent through accounts that showed a large sum of money as redundancy. They looked into it further for us and it transpired that Mum & Dad had held a director's meeting where they had awarded redundancy payments to themselves but not their son. He/we had no idea this meeting had taken place. The IP advised that as they formed a majority they hadn't done anything wrong (legally) although obviously morality is questionable.
This, along with various other things they have done has basically reduced the value of the company down for us whilst allowing them to take additional funds. Is there anything we can do?
Thanks for reading. Any help gratefully received.
The relationship between son and parents had always been difficult and had been further breaking down for some time but some counselling sessions had started to open the son's eyes to the emotionally abusive relationship he was stuck in and he made the decision to leave the company which resulted in it ceasing to trade.
He noticed a large sum of money had been withdrawn from the bank account. His parents consistently refused to tell him what this sum was for. Some time later, the IP sent through accounts that showed a large sum of money as redundancy. They looked into it further for us and it transpired that Mum & Dad had held a director's meeting where they had awarded redundancy payments to themselves but not their son. He/we had no idea this meeting had taken place. The IP advised that as they formed a majority they hadn't done anything wrong (legally) although obviously morality is questionable.
This, along with various other things they have done has basically reduced the value of the company down for us whilst allowing them to take additional funds. Is there anything we can do?
Thanks for reading. Any help gratefully received.
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