Accountants / Business Advisor help please?..

[nekrum]

Hi

I am disputing how our company year end accounts have been drawn up but the other directors are unwilling to review, what are my options?..

Thanks in advance..

[fergywales]

What is your dispute, PM or email if required.

[Eric Mc]

nekrum said:

Hi

I am disputing how our company year end accounts have been drawn up but the other directors are unwilling to review, what are my options?..

Thanks in advance..

What's the problem -

accounting decisions made during the year
accounting format used
basic numerical errors

Limited company accounts need to comply with the formats set out in the Companies Act. They are illegal if they are not.

[nekrum]

Hi

Fundamentally the company is insolvent but the other directors aren't seeing it / wish to continue trading. There is no doubt that it has to be shut down but as a minor shareholder I don't know what my options are - refuse to get involved in anything not above board..

[mrmr96]

Tell them that this is (potentially) one of the few occations when the 'veil of incoporation' can be lifted. i.e. if they are found guilty of wrongful trading then they can be PERSONALLY persued. Wrongful trading being trading while knowing you're insolvent.

Read this as a starting point:
http://www.hmrc.gov.uk/manuals/insmanual/ins44320....

[nekrum]

mrmr96 said:

Tell them that this is (potentially) one of the few occations when the 'veil of incoporation' can be lifted. i.e. if they are found guilty of wrongful trading then they can be PERSONALLY persued. Wrongful trading being trading while knowing you're insolvent.

Read this as a starting point:
http://www.hmrc.gov.uk/manuals/insmanual/ins44320....

Thanks for that - as a director can I put the company into liquidation without their agreement?..

[Eric Mc]

Is there any chance that the company can reverse this situation?

[nekrum]

Eric Mc said:

Is there any chance that the company can reverse this situation?

I don't think so, not without introduction of funds which no-one is prepared to do.

[Eric Mc]

Is the balance sheet showing as negative at the moment or is it still positive?

[nekrum]

Eric Mc said:

Is the balance sheet showing as negative at the moment or is it still positive?

Negative..

[Eric Mc]

I presume they're not taking dividends or have negative director loan/current accounts?

[nekrum]

Eric Mc said:

I presume they're not taking dividends or have negative director loan/current accounts?

Thanks correct..

[Eric Mc]

It looks like it is just the way the company is trading that it is getting into trouble.

If further funds can't be injected into it from the current owner/managers, what can be done to improve the trading situation?

Can the directors reduce their salaries?

Can staff be reduced?