Business Forums : Legal Issues for Business

Director not complying...

By: Director [18-November-08 4:44PM]
1 posts

Businesswoman image (c) About My Business

Hi I'm lookng for guidance on where to go from here- my husband set up a Ltd company 18 months ago with 4 others,and are all equal shareholders and directors. One of the directors is a chartered accountant so has taken responsability for all finance issues- bank account,payments,wages etc. A 6th person (close frind of the accountant) was originally going to be a director, and says he has invested a large sum of money. He never actually signed up as a director though. The 4 directors who work on production(my husband included) are owed 2 months wages, and my husband asked to see the full books/bank statements / chq books/stubbs/ledgers etc as he doesnt believe the company should be in the serious finacial situation it is in. The accountant lives at the other end of the country and does all the work from home, so meetings have been arranged at the works address but twice the accountant has come up without any of the information m husband requested. He is entitled to see the information. Due to the state of the company, my husband and another director made the decision to leave employment , therefore reducing the wage bill and giving the company more chance of surving, but they have no intention of resigning as directors as they invested a large sum of money at set up and still want a say in what happens to the company. The acountant has mentioned about winding the company up but we dont want to do that, and have said we need to see the books for ourselves first.
How do we make the acountant comply with our requests. My husband is getting no support from the other 2 directors- we dont know why.
Can we report the accountant to anyone? He is acting as the copmany accountant as he is a director-he has not been employed as an "outside" accountant as such.

Re : Director not complying Stephen Edwards [14-January-09 11:38PM] 209 posts
Sounds like you'll need professional legal advice on this messy situation, good luck!

Re : Director not complying Lianne West [19-January-09 10:44PM] 453 posts
Agree with Stephen, best to get professional advice on this!

Re : Director not complying Tim Briggs [22-January-09 1:21AM] 819 posts
One of the problems with running a business is what happens when key relationships break down... usually things work out amicably but if not then you just need to remain calm and professional and find out where you stand legally so you can deal with the facts of the matter.