Trade Show stand and contract - legal advice needed
Discussion
"Friend" and I have a Limited company.
Exhibited successfully at a consumer show earlier in the year and signed a contract to exhibit at another show later this year.
"Friend's" circumstances have changed, so he can no longer contribute to the business.
Company cannot afford to pay for the stand and exhibit.Am currently trying to get companies I know to take the stand, but without much success so far.
The advise I need is -
1. Where can I advertise a consumer show stand?
2. Closing the business is an option, but how do I do it and what are the implications, as the business is registered at my home address?
Exhibited successfully at a consumer show earlier in the year and signed a contract to exhibit at another show later this year.
"Friend's" circumstances have changed, so he can no longer contribute to the business.
Company cannot afford to pay for the stand and exhibit.Am currently trying to get companies I know to take the stand, but without much success so far.
The advise I need is -
1. Where can I advertise a consumer show stand?
2. Closing the business is an option, but how do I do it and what are the implications, as the business is registered at my home address?
I can't help on 1.
For 2 there are lots of questions and a number of different answers.
You really need to take accountants advice but firstly do you need to close the business? Your friend could resign as a director? Is there any capital in the business? Are you the only two shareholders? Is the company solvent? You can choose to dissolve a company if all shareholders are in agreement and the company is solvent (there will be more requirements I'm sure). If the company is insolvent (can't meet its debts or liabilities outweigh assets) then you can choose a members voluntary liquidation or you can wait for someone to force you into liquidation. Get yourself some good advice though.
For 2 there are lots of questions and a number of different answers.
You really need to take accountants advice but firstly do you need to close the business? Your friend could resign as a director? Is there any capital in the business? Are you the only two shareholders? Is the company solvent? You can choose to dissolve a company if all shareholders are in agreement and the company is solvent (there will be more requirements I'm sure). If the company is insolvent (can't meet its debts or liabilities outweigh assets) then you can choose a members voluntary liquidation or you can wait for someone to force you into liquidation. Get yourself some good advice though.
Thnks for the reply Piglet.
In response:
Are you the only two shareholders? - Yes
Is there any capital in the business? - No. V. small company with no overheads.
Is the company solvent? - Yes, but not solvent enough to pay for the show stand, which would make the company insolvent and I'll investigate a members voluntary liquidation
You can choose to dissolve a company if all shareholders are in agreement and the company is solvent (there will be more requirements I'm sure) - Thanks and will check with Companies House
"Get yourself some good advice though." = Will do
In response:
Are you the only two shareholders? - Yes
Is there any capital in the business? - No. V. small company with no overheads.
Is the company solvent? - Yes, but not solvent enough to pay for the show stand, which would make the company insolvent and I'll investigate a members voluntary liquidation
You can choose to dissolve a company if all shareholders are in agreement and the company is solvent (there will be more requirements I'm sure) - Thanks and will check with Companies House
"Get yourself some good advice though." = Will do
Eric Mc said:
Agreed.
Can the business still operate without your "friend"?
Does it really need to close?
Can the business still operate without your "friend"?
Does it really need to close?
The Ltd company requires 2 Directors to continue, as I understood it, were he to resign, plus the skils he brings to the operation are needed for the business to continue.
I have another job as well, which will pay my mortgage etc, so closing the company seems like a logical step to end the chapter, but the Show contract is still a big headache
Under Company Law, a company can operate with only one director - unless its own Memorandum and Articles of Association stipulate otherwise.
Regarding winding up the company, the cheapest and easiest route is to simply apply to Companies House to have the company struck off the register. This should not be a problem provided there are no outstanding creditors who block the striking off application.
Regarding winding up the company, the cheapest and easiest route is to simply apply to Companies House to have the company struck off the register. This should not be a problem provided there are no outstanding creditors who block the striking off application.
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