Limited Company Bank Account

[trebor999]

I am one of four shareholders (25% shareholder) in a small limited company that looks after the communal gardens to our barn conversion. There are two directors. They closed the company bank account and have been operating the company via a personal bank account in one of their names, with no visibility on expenditure.

They now realise this was a mistake and want to open a new business bank account and need me to provide the bank with ID because I am a person with significant control. I have refused, I have many reasons not to trust them…… The question is, do I legally have to provide my details.

A little background, For the last 19 years the company was run filling dormant accounts and each owner paying a quarter share of the few invoices directly to the supplier. The total running cost were around £500 each per year. We spent in last year £1,300 on an accountant to produce an income/Expenditure report (not audited) 16 transactions worth £3,000

[atticus]

The bank is required by law to know its customer, under anti money laundering legislation. You may refuse to provide documents to verify your identity. It may decline to open an account.

[atticus]

Some further thoughts:

1. You can surely go into a branch of the bank with your passport etc to verify your identity.

2. If you don't provide ID, you will be in no position to complain if the directors do not open a separate account.

3. (Having reminded myself of your previous thread) You can use this as leverage to get the other 2 to comply with their legal obligation to appoint you as a director.

[trebor999]

Thanks, your comments are extremely useful. I think the personal bank account has been identified by Barclays as being used to run a limited company, hence the panic to open a correct account.

We do not want to provide our details because the directors will not provide any insight into the companies finances, they have openly said “you don’t have any rights as a shareholder” they simply vote for what they want to do.

There is a covenant and articles of association which they use to support an argument but disregard if the clause doesn’t fit their agenda. We managed for 19 years paying quarter share of invoices directly to supplies ….. a gardner and once a year emptying of a septic tank.

I am sure we could in-force it if we took legal action but is it worth the trouble and expense? The reality is it’s a strip of land and a septic tank! Power really has gone to their heads!

A word of warning to anyone buying a property connected to a management company, ask to see all records to the management company, ensure you are 100% happy with how its run, you would run a mile if you saw how these two are running this one.