Director resigns with a loan account still unpaid

[PWJ1]

We have had a Director resign from our Company and take up a postion with a competitor, however, he has left with a loan account of approx. £15k that requires him to settle.

He has no contract of employment as he is a long standing Director; yet he is the Company signatory on all employees contracts that include a clause for immediate repayment of any debts to the Company upon leaving.

How best should we approach this for legal recovery?

Thanks in advance

[enquirer]

Re: Director resigns with a loan account still unpaid

He has no contract of employment as he is a long standing Director ...

Directors are de facto employees of the company.

How best should we approach this for legal recovery?

Subject to the terms and conditions under which the loan was made, if you can prove it, ask for it.

If he refuses, sue him.

[PWJ1]

Re: Director resigns with a loan account still unpaid

Thanks for the advice and what would you suggest is the most expedient method of suing him...? i.e. direct through small claims Court or via a solicitor?

[FlamingParrot]

Re: Director resigns with a loan account still unpaid

Thanks for the advice and what would you suggest is the most expedient method of suing him...? i.e. direct through small claims Court or via a solicitor?

You can submit a money claim online here: https://www.moneyclaim.gov.uk/web/mcol/welcome

A fee is payable, depending on the amount claimed. If your claim is for £15k, it won't be allocated to small claims, the current threshold is £10k.