Limited Companies

[jon1965]

Re: Limited Companies

I have updated the explanation. To be honest some of these events are very near by and I doubt anyone else would bid. I believe the administrator is the deceased sister. As long as she can get the directorship sorted out the business should be able to continue trading and everything will be ok. Without the two of them working together I am not sure the business has much value as B is the creative one.
Walesman, this has nothing to do with trying to gain access to the assetts or the business but everything to do with keeping the commitments the business has made. If it were your wedding you would want to know things were happening wouldnt you

[TUTTSI]

Re: Limited Companies

Unfortunately unless B is a shareholder or plus a director B will rank as a creditor unless some provisions had been made with the will of A who unfortunately died suddenly. This is the way Ltd companies work. Does B have any contract agreement or letter from the company regarding their working relationship which the beneficiary of A will honour and give B some shares in the company assuming that immigration issues have all been resolved. Is B a director? or was A the only director? as we have ascertained from your earlier post that all shares were owned by A, but you did not qualify if B was indeed a director?

Ok. Lets call them person A and personB.
They went into business . However the limited company was put in person A's name for various reasons part of was an unresolved immigration issue with person B. Person B already was a sole trader. All orders came through to company A and also all payments. For want of a better expression the jobs were then subcontracted out to the sole trader and paid for on completion. There was then a profit share from the limited company.
So now we come to the difficult bit. A died this weekend very unexpectdley. There is money in the limited company that has been paid by clients for jobs not yet done. These jobs are weddings etc. If B can not get paid he will be unable to do the jobs.I have suggested invoicing the ltd company for all outstanding jobs just so that he becomes a creditor of the limited . Everything had up to now been done on an informal agreement with A keeping all the records. There was trust between the two.

[labman]

Re: Limited Companies

I alluded to that in post 13, so I think we have to assume there was nothing written. If it is a relative, hopefully the will may make things easier - do we know what is written in the will?

[enquirer]

Re: Limited Companies

It seems that you can have a limited company with one shareholder , now the question arises as to how to operate the company.

The Board continues to manage. Shares are property and would normally, in the absence of other arrangements, pass to former owners heir.

From that one limited companies there are several other sole trader businesses but all payments go through the limited company.

Is this what you mean?

The Co is contracted by customers to do the work. The Co then subcontracts to the sole traders. The Co bills the customers who pay the Co. The subcontractors then bill the Co.

[jon1965]

Re: Limited Companies

My understanding is that B is not a genuine director. However there are email emails confirming the jobs and price, . I also think it is A's sister who is the administrator and I do not know if there is a will. I think there may be added personal complications but I never asked and they never tolls

[jon1965]

Re: Limited Companies

The Board continues to manage. Shares are property and would normally, in the absence of other arrangements, pass to former owners heir.


Is this what you mean?

The Co is contracted by customers to do the work. The Co then subcontracts to the sole traders. The Co bills the customers who pay the Co. The subcontractors then bill the Co.

Thanks, yes that is exactly the way the money goes. This is on a small scale though . There is no board to continue to manage the company so the person administrating the estate needs to get a director in place PDQ but I don't know how that is done. Also when your brother has died unexpectedly it is hardly my place to tell them what to do.

[TUTTSI]

Re: Limited Companies

Jon, I believe that B either needs to seek urgent advice from either his accountant or solicitor or to negotiate urgently with the beneficiary on behalf of A or to make some inroads in negotiations with her ASAP as she would probably would not be interested in the company and would not be able to run it without B. It therefore stands to reason that B has a bigger interest in what happens to this company and needs to act fast to keep the momentum going for the company and it's interests both for the benefit of beneficiary and for B,even more importantly for the contracts with the clients of this Ltd company.

[jon1965]

Re: Limited Companies

Thanks Tuttsi.
I now believe that they are meeting next week to discuss the future. I know the job this Saturday is being done regardless of payments etc.

Long term it will be quite easy to transfer all the new business to the sole trader if necessary

[labman]

Re: Limited Companies

Also when your brother has died unexpectedly it is hardly my place to tell them what to do.

Indeed not, but if you are a friend, then helpful suggestion may be welcomed at a very difficult time for the family.

[Sapphire]

Re: Limited Companies

I'm with Tuttsi, the first thing they should do is get a meeting set up with the accountant and he should be able to guide them as to what to do next, also don't worry about butting your nose in, as Labman says it will most likely be welcome, even if you just suggest the accountant its something.

[jon1965]

Re: Limited Companies

Thanks everyone. B is going to call the account tomorrow and Aask him to give the sister a call. It helps that they both use the same accountant