LTD company and personal debt.

[PAULJ5555]

The question I have is if I took someone to small claims court and won could I enforce the debt from the person through their share holding of their LTD company earnings?

I know the other way round the person is limlted from their LTD company debts and their personal assets cant be touched.

Does it work both ways?

[PurpleMoonlight]

PAULJ5555 said:

The question I have is if I took someone to small claims court and won could I enforce the debt from the person through their share holding of their LTD company earnings?

I know the other way round the person is limlted from their LTD company debts and their personal assets cant be touched.

Does it work both ways?

You mean force the Ltd to pay you from it's own assets? No.

You might be able to get an attachment of earnings though via the Court which the employer would then deduct from the employees earnings.

[anonymous-user]

In principle you could apply for the appointment of a receiver over the assets of a judgment debtor, including shares in a company, but that would be impractical for a small claim because of the substantial costs involved.

[PAULJ5555]

PurpleMoonlight said:

PAULJ5555 said:

The question I have is if I took someone to small claims court and won could I enforce the debt from the person through their share holding of their LTD company earnings?

I know the other way round the person is limlted from their LTD company debts and their personal assets cant be touched.

Does it work both ways?

You mean force the Ltd to pay you from it's own assets? No.

You might be able to get an attachment of earnings though via the Court which the employer would then deduct from the employees earnings.

It might be the same thing, I meant force the person to pay from their share holdings, they have 50% shares and take drawings from the company as well as being a Director and get wages.

[PAULJ5555]

Breadvan72 said:

In principle you could apply for the appointment of a receiver over the assets of a judgment debtor, including shares in a company, but that would be impractical for a small claim because of the substantial costs involved.

Yep the costs to do it are somthing that will cause issue.

Could I also ask, If a person buys say 20% shares in a company and the share holder after the sale wont transfer the shares into the buyers name. What action can be taken? The buyer can prove the sale took place.

[anonymous-user]

Apply to Court for rectification of the share register.

[PurpleMoonlight]

PAULJ5555 said:

It might be the same thing, I meant force the person to pay from their share holdings, they have 50% shares and take drawings from the company as well as being a Director and get wages.

The attachment of earnings would be on the wages only as far as I aware.

Dividends are investment income.

[anonymous-user]

You could apply for a charging order against shares.

[EW109]

Breadvan72 said:

You could apply for a charging order against shares.

Indeed you can, post-judgment.

The practical point is that to enforce the charging order if the judgment debtor does not pay up voluntarily, you need to bring a fresh (CPR Part 8) action for an order for sale. That is all a faff and an expense, and in the case of shares in an unlisted company, will turn out to be an expensive waste of time if no one wants to buy the shares.

[anonymous-user]

I agree. Most forms of enforcement action can be impractical against a small debtor.

[Turfy]

PAULJ5555 said:

I know the other way round the person is limlted from their LTD company debts and their personal assets cant be touched

...unless they were trading insolvently and you could prove this. They then, cannot hide behind the Limited or Ltd company in some cases.

With regards to your original question, most have been agreed above. I would decide based on the sum owed/outstanding or how much you want to go after this person/s. Sometimes the money is not the motivator. Sometimes you just want to get them...!!

[PAULJ5555]

Turfy said:

PAULJ5555 said:

I know the other way round the person is limlted from their LTD company debts and their personal assets cant be touched

...unless they were trading insolvently and you could prove this. They then, cannot hide behind the Limited or Ltd company in some cases.

With regards to your original question, most have been agreed above. I would decide based on the sum owed/outstanding or how much you want to go after this person/s. Sometimes the money is not the motivator. Sometimes you just want to get them...!!

Not trading insolvently - the sum is about 8k. No malice towards the person everyone is allowed an opinion but when it comes to the law, right it right.