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Unscrupulous Directors - Companies


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Hi can anyone give me some advice.

My mate and a number of his colleagues have been awarded an Employment Tribunal judgement against their ex-employer for unpaid wages, redundancy pay and pay in lieu of notice.  The amount due to them is approximately £60K in total. 

Their ex-boss was the director/owner of the company and initially this person told his staff that the company was going to be insolvent so he advised them to make a redundancy payment claim RP1 from the insolvency service. 

The company is a limited company and the director had not submitted the yearly accounts to HMRC, so Companies House were about to go down the route of a compulsory strike-off.  Because of the money he owes his former employees an objection was raised to stop this happening. So at the moment the company is still showing as Active on Companies House register.  This objection will be upheld until September 2020. 

The ex-boss (director/owner of the company) then resigned and another director was appointed.  This person who is now named as the director had nothing to do with the company previously.   It no longer appears to be trading and is not responding to correspondence for their employment awards.  

The ex-director now seems to have set up another limited company offering the same services as the previous one.  Plus he seems to have another couple of companies which are trading too. Obviously if he had gone insolvent then this could have impacted on his other companies.

He does seem to have a history of setting up companies but not filling accounts and then resigning and setting up other companies. Therefore he must owe a lot a people money, tax and vat but this is still being allowed to happen. 

Because the company was a limited company and is no longer in the ex-director’s name, is it just a waste of time and money applying to the High County Court in them trying to pursue their claim's.

So how can we stop him doing this now and in the future and hold him accountable for what he owes.  Hopefully the employees can get what monies they are due.

Any help/guidance you can offer would be extremely welcome.

Edited by FANG
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Employers who have become insolvent or bankrupt, or are in administration or liquidation 

There is a government scheme which pays you some of the money you might be owed if your employer becomes insolvent. This is called the National Insurance Fund.

If you have claims which can't be paid from the National Insurance Fund it usually isn't worth chasing a claim against your employer. They'll have no money to pay you and it can be complicated to make a claim because you may need to get permission from the administrators or a court.

https://www.citizensadvice.org.uk/work/problems-at-work/employment-tribunals-from-29-july-2013/employment-tribunals-what-to-think-about-before-you-start-a-claim/

Anything over and above that would require the advice of a solicitor as they would be pursuing a civil claim. However I'm inclined to think they are on a hiding to nothing and it wouldn't be worth incurring any further cost over and above the tribunal. 

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Hi Reg 

Thanks for that. 

The Director is loaded but it looks like he has been playing the system for years and probably owes thousands in unpaid wages and taxes via his various companies. I' m surprised HMRC have not investigated and taken action.

Does anyone really care other than the workers who have been shafted.

 

 

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Presumably you would for that kind of money issue a money claim and then seek to get a judgement.  The amount is large through so its not a small claim?

The company may well end up getting wound up.

However there are rules regarding phoenix 'ing companies.

Usually with such things its best to find others and get together and bring the local press onside.

 

Edited by Fromage Frais
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16 minutes ago, Fromage Frais said:

Presumably you would for that kind of money issue a money claim and then seek to get a judgement.  The amount is large through so its not a small claim?

The company may well end up getting wound up.

However there are rules regarding phoenix 'ing companies.

Usually with such things its best to find others and get together and bring the local press onside.

 

They will probably get wound up but the Directors liability ends with that company. it would be great if they could get their money from his other businesses he runs.  However I don't think there is much chance of that.

The system favours Directors / business owners in certain cases.

The money ex employees and the HMRC could be losing must be phenomenal.  

 

 

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To break through the company onto the individual you would need to prove in court he was trading insolvent.

Easier said than done (not filing accounts wont be enough) and if over £5k would have to be heard at the high court  with associated costs.

Most companies will ask before supplying services and or credit of any real value for accounts etc, if not provided they will require payment up front or personal guarantees. 

Individuals are the ones who tend to be caught out by behaviour like that.

Edited by captainb
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1 hour ago, dougless said:

I do because as a taxpayer I am also being cheated by this snot-goblin.

I totally agree Dougless. So how do we bring this snot-goblin down?

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1 hour ago, FANG said:

I totally agree Dougless. So how do we bring this snot-goblin down?

Some serious negative comments on widely read/subscribed social media platforms like Facebook and LinkedIn might cause some discomfort to the little tyke.  However I suspect as a serial company defrauder he won't care but its worth a try.

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The Govt and HMRC do care about this I think.  Try Sending your email to Clarke Willmott solicitors (offices in London and Bristol), as I think they have people looking for serial dodgy directors like yours appears to be.   

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