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A question related to the law in England if I may!
“A” is the sole director (and owner) of a limited liability company but has died. “B” is the executor but struggling to wind up the estate because there is no paperwork pertaining to A’s company. Tax returns were not filed for many years and the company may have substantial unfulfilled obligations (debts, unpaid taxes, etc). The sum of A’s estate falls far short of the upper possible bound of these debts.
The accountant wants B to become the new sole director of the company so that it can be closed.
B is concerned that he will then become personally liable for any outstanding debts/taxes that the company is unable to satisfy.
Is B right to be concerned?
“A” is the sole director (and owner) of a limited liability company but has died. “B” is the executor but struggling to wind up the estate because there is no paperwork pertaining to A’s company. Tax returns were not filed for many years and the company may have substantial unfulfilled obligations (debts, unpaid taxes, etc). The sum of A’s estate falls far short of the upper possible bound of these debts.
The accountant wants B to become the new sole director of the company so that it can be closed.
B is concerned that he will then become personally liable for any outstanding debts/taxes that the company is unable to satisfy.
Is B right to be concerned?
