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Limited Company

4 replies

Carwrecker · 10/11/2020 18:24

Sorry if there is already a thread for this.

A good friend of mine has set up a limited company converting Campervans (huge boom in the industry at the moment). He is only 22 so struggling to get motor trade insurance. He has asked if I would be okay being put down as a director of the company so the policy can be taken out in my name. I work full time so i am currently paying tax by PAYE. I was wondering what the legalities would be? I've been reassured if the company starts to fail my name will come off the directorship. I do regularly visit the shop to lend a hand and have an eye on the books myself. Any help will be appreciated.

T.I.A

OP posts:
Carwrecker · 10/11/2020 18:25

To add I'm 30 with 9 years no claims on my personal insurance

OP posts:
Hayeahnobut · 10/11/2020 18:37

It's the professional version of fronting. Doing it as a limited company does not remove personal liability for fraud.

Carwrecker · 10/11/2020 20:42

Do you mean it would be classed as fraud?

OP posts:
Hoppinggreen · 11/11/2020 13:44

It’s a bad idea. Being a co Director carries certain legal responsibilities and if you dont know what they are then there is no way you should be one
As for “I’ve been reassured” , not worth anything.

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