Tweet
I'm company secretary to a really struggling business. Sales have virtually stopped and there is currently insufficient money to pay the employees, myself, the director and 1 other.
As a result, in order to cover the shortfall, I'm paying money into the business account as a personal loan every now and then.
Seems strange as to why I'd do that, however my spouse is the sole company director but has been stricken with a sudden and overwhelming case of Alzheimer's to the point where it's impossible for any decision making. I can't remove the director, even though the Articles of Association gives me the right to, for mental health problems, as there has to be a Director on Companies House records, something I don't want to take on. That aside, here's the gist of the post.
My necessity to provide personal loans to cover wages is costing me a fair amount. I don't want to make a sudden liquidation as I want to work in the best interests of everyone, For instance we have several hires of items, paid for in advance, and I wish to give the other employee some decent notification of redundancy. In advance of the expected closure, the sole worker has had her working hours increased significantly due to the necessity of doing a planned closure, stocktaking etc An At Risk notice has been sent already.
Anyway, my concern here, is how would I be able to reclaim personal loans when a liquidation is started. Could that be added to a redundancy claim?
Also, any closure of the business will more than likely be a sudden event without warning, and may even be via a creditor laying a Winding Up Order against the business resulting in a swift closure. Could I even make a Winding Up Order myself as a person in my own rights, due to the inability of the company to repay my loans?
In such a case, and in respect to a lack of redundancy notification prior to the event, what period would be used to calculate redundancy pay? I know that this is going to happen one way or another but I need to maximise the outcome to give me restitution of the amount loaned, and give me and the other employees the best redundancy pay, when the company goes down without prior notification of redundancy.
As a result, in order to cover the shortfall, I'm paying money into the business account as a personal loan every now and then.
Seems strange as to why I'd do that, however my spouse is the sole company director but has been stricken with a sudden and overwhelming case of Alzheimer's to the point where it's impossible for any decision making. I can't remove the director, even though the Articles of Association gives me the right to, for mental health problems, as there has to be a Director on Companies House records, something I don't want to take on. That aside, here's the gist of the post.
My necessity to provide personal loans to cover wages is costing me a fair amount. I don't want to make a sudden liquidation as I want to work in the best interests of everyone, For instance we have several hires of items, paid for in advance, and I wish to give the other employee some decent notification of redundancy. In advance of the expected closure, the sole worker has had her working hours increased significantly due to the necessity of doing a planned closure, stocktaking etc An At Risk notice has been sent already.
Anyway, my concern here, is how would I be able to reclaim personal loans when a liquidation is started. Could that be added to a redundancy claim?
Also, any closure of the business will more than likely be a sudden event without warning, and may even be via a creditor laying a Winding Up Order against the business resulting in a swift closure. Could I even make a Winding Up Order myself as a person in my own rights, due to the inability of the company to repay my loans?
In such a case, and in respect to a lack of redundancy notification prior to the event, what period would be used to calculate redundancy pay? I know that this is going to happen one way or another but I need to maximise the outcome to give me restitution of the amount loaned, and give me and the other employees the best redundancy pay, when the company goes down without prior notification of redundancy.
Comment