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Without pointing a finger at the person in question, that director is now overwhelmed with Alzheimer's disease and is totally unfit for the role of the sole company director, albeit being a majority shareholder. The Articles of Association says that the director may be disqualified for reason of mental incapacity, or wording of that nature.
As the company has a Company Secretary who is, at this time, playing the role of running the business as best as possible, and is a minor shareholder, the intention is to run down the company as effectively as possible, and as soon as possible.
As it stands, the only creditors are HMRC and a bank who has an outstanding balance on a BBL. The HMRC amounts to future VAT and Corporation tax liabilities but have no past debts owed to them.
Of course there are a few minor creditors such as for electric, alarm system etc.
The business has an employee who would be entitled to redundancy pay which would be difficult to make as the business is really not creating the required income at present, and it's likely that even the basic pay in the meantime may be too much to afford.
So, what is the best way forward in this situation?
Does the removal of the director need to be approved somehow, given that the only other person with shareholder rights is the company secretary?
Would closing the company involve an insolvency practitioner and how would that be able to write off any future debt such as BBL, HMRC; as well as take care of redundancy payment.
Any other advice would be welcome too
As the company has a Company Secretary who is, at this time, playing the role of running the business as best as possible, and is a minor shareholder, the intention is to run down the company as effectively as possible, and as soon as possible.
As it stands, the only creditors are HMRC and a bank who has an outstanding balance on a BBL. The HMRC amounts to future VAT and Corporation tax liabilities but have no past debts owed to them.
Of course there are a few minor creditors such as for electric, alarm system etc.
The business has an employee who would be entitled to redundancy pay which would be difficult to make as the business is really not creating the required income at present, and it's likely that even the basic pay in the meantime may be too much to afford.
So, what is the best way forward in this situation?
Does the removal of the director need to be approved somehow, given that the only other person with shareholder rights is the company secretary?
Would closing the company involve an insolvency practitioner and how would that be able to write off any future debt such as BBL, HMRC; as well as take care of redundancy payment.
Any other advice would be welcome too
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