help

[help needed]

Regrettabley me and my friend went into a construction business with two other partners (the money men), we are down as two directors of the company the other two partners are down as secretaries. They are already running a large successful company and we are division of it, so we have followed all there advice as they are the ones who pay all our mens wages. A few months ago we lost a contract me and my partner were willing to lay off some subcontractors but they insisted that we kept them as there was another contract around the corner. Unfortunately the contract did not start and now the company is making a loss and they are saying that we are liable for the debt! The company is a limited company what can happen to me? could they take my house as i am married and have a joint mortgage.

we paid an initial premium when the company was formed. i expect to lose this, they are now asking us to personally secure loans again'st our houses, which we are rusing to do, the loses we are accruing are largley down to the overheads of their ' Successful ' Company,

We currently do not pay wholesalers or pay the wages to our Subies as this larger company does it, as all money we invoice for goes to there company

[taiarain]

I'm not clear on the legalities of this issue. I think you should definitely seek legal counsel.

[Brian Turner]

Firstly, you should certainly talk to a solicitor - won't be cheap, but a good solicitor can save you a lot of hassle if working right.

Secondly - sometimes companies run at a loss - it's business - but so long as there's possible work coming through, there's always the chance to pick it up.

Thirdly, as it's a limited company that means a limited liability company - I can't see any reason why you should ordinarily see your personal assets at risk because that's one of the big points about limited liability.

Fourthly - if they want to write off losses then they cannot force you to take out loans against personal assets to prop up the business.

That's the point of a limited liability company - it's a different legal entity completely to your personal life and assets, and the two just don't mix.

It sounds overall as if there is some serious miscommunication at work here, so definitely worth trying to speak nicely to these people to sort out whatever problems have arisen, but ensure you've chatted to a solicitor to ensure you know what your actual legal boundaries are as and when required.

Hope that helps, and welcome to Platinax.

[Paul Hirst]

Obviously as Brian says get some legal advice but whatever you do DO NOT SIGN ANY PERSONAL GUARENTEES OR SECURE YOUR HOUSE AGAINST ANY LOANS IF YOU DO YOU WILL BE SCREWED.