Removal of me as a signatory on a business bank account
Discussion
Several years ago my wife and I owned a little internet based business (limited company) which due to the kids coming along, we decided to sell. It sold for a few thousand pounds and was bought by a chap in London. The business bank account, directorships etc were all transferred to him and we wished him luck. I checked on the website from time to time and thought nothing more of it.
Fast forward to 3 weeks ago, I start getting very weird phone calls from the bank where the business account was. They want to talk to me urgently, but I can't answer any security questions so they won't tell me anything. On about the tenth call I got annoyed and asked what it was regarding and the said they either needed to speak to me or the chap who bought the company. Alarm bells ring in my head.
So I then go into a branch (and after a lot of dicking about) they tell me I'm still a signatory on the business account and it's overdrawn but that is all. I am given a mandate for him to sign to remove me as a signatory. Checking all the paperwork from the sale, I dig out his contact details and call him and have done every few days up until now. I get nothing, he never answers his phone, I leave messages, if someone does answer I'm told he's busy and can I leave a message. I have always been ultra patient and polite but this is seriously p1ssing me of now.
Apologies for the essay but can I remove myself as a signatory from the account without his signature? I'm unlikely to get it as his too elusive and I can't rely on it being done. Do I have any other options? My sole goal in all this (as I believe he is going bust) is not to be liable for paying off his overdraft, the amount of which I have no idea. Just to be clear I do not have any part (actual or legal) in the company ever since it was sold.
Many thanks for any help
Fast forward to 3 weeks ago, I start getting very weird phone calls from the bank where the business account was. They want to talk to me urgently, but I can't answer any security questions so they won't tell me anything. On about the tenth call I got annoyed and asked what it was regarding and the said they either needed to speak to me or the chap who bought the company. Alarm bells ring in my head.
So I then go into a branch (and after a lot of dicking about) they tell me I'm still a signatory on the business account and it's overdrawn but that is all. I am given a mandate for him to sign to remove me as a signatory. Checking all the paperwork from the sale, I dig out his contact details and call him and have done every few days up until now. I get nothing, he never answers his phone, I leave messages, if someone does answer I'm told he's busy and can I leave a message. I have always been ultra patient and polite but this is seriously p1ssing me of now.
Apologies for the essay but can I remove myself as a signatory from the account without his signature? I'm unlikely to get it as his too elusive and I can't rely on it being done. Do I have any other options? My sole goal in all this (as I believe he is going bust) is not to be liable for paying off his overdraft, the amount of which I have no idea. Just to be clear I do not have any part (actual or legal) in the company ever since it was sold.
Many thanks for any help
Surely this must have been sorted when you sold the business.
Did you really just add the new owner as a signatory to the bank account and not remove yourself?
As far as I am aware signatories to a Ltd bank account are not personally liable for any overdraft unless they have given the bank a personal guarantee. Did you?
Did you really just add the new owner as a signatory to the bank account and not remove yourself?
As far as I am aware signatories to a Ltd bank account are not personally liable for any overdraft unless they have given the bank a personal guarantee. Did you?
PM, yes apologies I should have explained that more clearly in the OP.
Post the sale, I stayed on as a director and signatory for a small period to ensure the handover was completed to his satisfaction. I then resigned as a Director with Companies House and filled out a new bank mandate removing me as a signatory. I then sent this to him to sign and return to the bank. Clearly this never got done as the bank's last mandate is dated the same as the business sale, not 3 months later. Clearly this is my mistake, looking back I was serving in Iraq at this point so somewhat distracted.
I never gave the bank a personal guarantee.
Post the sale, I stayed on as a director and signatory for a small period to ensure the handover was completed to his satisfaction. I then resigned as a Director with Companies House and filled out a new bank mandate removing me as a signatory. I then sent this to him to sign and return to the bank. Clearly this never got done as the bank's last mandate is dated the same as the business sale, not 3 months later. Clearly this is my mistake, looking back I was serving in Iraq at this point so somewhat distracted.
I never gave the bank a personal guarantee.
grenpayne said:
PM, yes apologies I should have explained that more clearly in the OP.
Post the sale, I stayed on as a director and signatory for a small period to ensure the handover was completed to his satisfaction. I then resigned as a Director with Companies House and filled out a new bank mandate removing me as a signatory. I then sent this to him to sign and return to the bank. Clearly this never got done as the bank's last mandate is dated the same as the business sale, not 3 months later. Clearly this is my mistake, looking back I was serving in Iraq at this point so somewhat distracted.
I never gave the bank a personal guarantee.
If you gave no personal guarantee, have resigned as a director and are no longer listed as a director/shareholder/comp sec at companies house you can ignore this as you have no liability.Post the sale, I stayed on as a director and signatory for a small period to ensure the handover was completed to his satisfaction. I then resigned as a Director with Companies House and filled out a new bank mandate removing me as a signatory. I then sent this to him to sign and return to the bank. Clearly this never got done as the bank's last mandate is dated the same as the business sale, not 3 months later. Clearly this is my mistake, looking back I was serving in Iraq at this point so somewhat distracted.
I never gave the bank a personal guarantee.
If you feel like providing evidence to the bank so that their details can be updated it will stop their letters/contact but you have no obligation to do so.
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