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Legal matters

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Original poster

urgent legal advice needed to navigate a court hearing

58 replies

AngelaKennedy · 05/12/2022 12:36

I am an ex Director of a company that was run and owned by my childrens father - we have twins age 9. We have not been together for 5 years or more. The company dissolved in 2019, and I resigned in 2018. I have worked PAYE all my life for other companies, never had a controlling position in the company and never had access to the accounts.

I am now being requested to attend a court hearing as an ex director of this company as they are looking to recover costs, as part of the liquidation. as part of this the liquidators are looking to force a sale of my flat, my only asset. We are currently not living in this flat as I had to move out as the dad wouldn't move and I couldn't stand it anymore. Now 5 years on, and having got him out of the flat I am being asked to pay for his director debt aswell as my own. His directors debt would basically be all my profit gone from the flat.

I didn't ask for any of this. I have put up with an abusive situation for 15 years, and now I am being asked to pay for debts I never knew about. My court case is on the 10th January and I have no idea where to start. I did visit a solicitor and together we came up with a strategy that basically means I take responsibility for my £10k Directors Debt and dispute the other Director Debt which comes to around £70k. I can't afford a barrister, and the advise I took from the solicitor quoted me £8k to represent me, to make a skeleton argument and to gather evidence etc. and for the barrister to represent me in court.

Would it make a difference if I lived in the flat they wish to force a sale on? as a mother of twins, would this safeguard my asset as our only home? the only reason I a renting a place was to move out of it because the kids dad wouldn't move. I had to threaten him with bailiffs and remove the interest for him to move. He is abusive and has been controlling me financially for 15 years, and it feels like there is no end in sights. He has since declared himself homeless, which is whey I am being chased for his directors debt.

any advise to navigate this would be much appreciated.

OP posts:
RedHelenB · 06/12/2022 16:02

Whose name is on the deeds to the flat?

Original poster
AngelaKennedy · 07/12/2022 10:51

I am the sole owner of the flat. Although claimant (liquidators) may well put a 'force of sale' agreement on it so when I sell they take their cut etc. does that make sense.

OP posts:
taxpayer1 · 07/12/2022 10:56

You are legally responsible as you were a Director. What do you think a Director is?

As a director, you’re legally responsible for running the company and making sure information is sent to us on time.

This includes:

the confirmation statement
the annual accounts, even if they’re dormant
any change in your company’s officers or their personal details
a change to your company’s registered office
allotment of shares
registration of charges (mortgage)
any change in your company’s people with significant control (PSC) details
You can hire other people to manage some of these things day-to-day (for example, an accountant) but you’re still legally responsible for your company’s records, accounts and performance.

Original poster
AngelaKennedy · 07/12/2022 11:21

even though I literally had no knowledge of the other directors doing? as in no knowledge in the money he was taking from the company and had no access to the accounts and wasn't in any way part of any decision making within the company. why was I even a director? i was forced to take out loans in my name to support the company, loans I had to pay back from my personal account. I am still liable? no case to fight is what you are saying? coercion, manipulation and used by this other person doesn't hold any weight in this instance. I am liable, end of is what you are saying, irrespective of not having anything to do with this company or benefiting from it in anyway whatsoever .. literally it is going to take me down for being a good mother.

OP posts:
taxpayer1 · 07/12/2022 11:26

I am not a solicitor but I think so. You cannot claim ignorance of the law to avoid consequences. Could you sell the flat to pay the barrister and try to save as much as you can? You could end up losing everything if you don't

Fragrantandfoolish · 07/12/2022 11:27

Yes you are liable . The fact you were not aware is separate and doesn’t make you not liable. You would then need to take a separate action to sue the other director for his misuse of company funds etc.

however you had legal requirements as a director and you should not have continued in role if you couldn’t access accounts etc, you should have resigned the position,

the coercion etc is also illegal and that is also a separate case.

but right now you’re liable, will continue to be liable and were also negligent to continue as a director knowing you were not seeing rhe accounts etc, this makes you also culpable.

taxpayer1 · 07/12/2022 11:27

As a director, you are supposed to do all the things you didn't do.

Verite1 · 07/12/2022 11:32

I would try and find the funds for a barrister to represent you. See if the solicitor will find a very junior barrister who will be cheaper (but will still know the law if they specialise in this area). Or see if you can skip the solicitor and instruct a barrister via direct access. But I wouldn’t delay - 10 Jan is very soon so lots of barristers will already be booked up.

Original poster
AngelaKennedy · 07/12/2022 11:34

wow okay. tough to swallow. and the other director now 'homeless' walks away scot free as I am unable to sue him it would seem. untouchable because of his homeless status, yet still manages to run a business .. how is that even possible?

OP posts:
Original poster
AngelaKennedy · 07/12/2022 11:39

the other director keeps telling me he can reach out on a 'without prejudice' basis to the claimant in which he takes responsibility for both director debts with an agreed payment plan. Is he deluded that they would accept a payment plan from him, given he has failed to meet a previously arranged payment plan?

OP posts:
femfemlicious · 07/12/2022 11:41

Wow this is so horrible😢. We're all the debts accrued before you resigned. So sorry you are going through this. You really should have gotten him out of the flat ages ago.

taxpayer1 · 07/12/2022 11:43

You are an adult. You signed up to be a director. The liquidator will go against you as you are the only one with assets. If you were the creditor, whom would you sue? You can take your ex to court and bankrupt him if you want so he won't be able to be a director. That won't solve your issue though as he has no assets.

Original poster
AngelaKennedy · 07/12/2022 11:45

you are right I feel here. I took some advice from a solicitor (TV Edwards) who seemed to think they could a solicitor and a barrister (cost £8k) assist. The strategy we came up with was to 'take responsibility for the £10k directors debt that was assigned to me but dispute the £55k assigned to the other director. They felt I had a good case to present. I just can't afford £8k. Direct Access is also something a friend of mine suggested, so I should look into that ASAP.

OP posts:
Original poster
AngelaKennedy · 07/12/2022 11:50

and the fact that he bullied me, terrorised me and threatened me to get what he wanted doesn't have any place here? as a single mother of twins I am not able to classify myself as 'homeless' but it feels like a good way out of 'life'

OP posts:
Fragrantandfoolish · 07/12/2022 11:51

AngelaKennedy · 07/12/2022 11:50

and the fact that he bullied me, terrorised me and threatened me to get what he wanted doesn't have any place here? as a single mother of twins I am not able to classify myself as 'homeless' but it feels like a good way out of 'life'

Did you report this at the time to the police, is their police evidence to back this up?

Newusernameaug · 07/12/2022 11:52

I’d represent myself and plead that you didn’t have the capacity to consent to any of this and were forced / coerced / manipulated into being a director and this is ongoing abuse.
gather everything you can to help support your case and start building yourself a file, in chronological order of any evidence you have.

anonymous123a · 07/12/2022 12:03

You've had a rough ride here OP. Firstly, is there any evidence of what you have said here about the domestic abuse you experienced? Police or social care reports? School nurse involvement? Take all the evidence you can to court to explain the abuse you were experiencing. It's worth speaking to Women's Aid they may be able to offer advice as well. In terms of legal representation it may be worth contacting local universities to see if they have a pro Bono clinic who may represent you.

cupofdecaf · 07/12/2022 12:08

What evidence do you have that the relationship was abusive? Police reports, Social services, Texts from him, family or friends that can back you up?
Not my area of expertise but if you can prove it was an abusive / controlling relationship and you didn't consent to being a director nor did you have access to the appropriate accounts etc you could try saying that and see if there's anything that can be done. I would imagine it's a fairly common form of abuse.

cupofdecaf · 07/12/2022 12:10

Just to say you may have signed documents but was that informed consent? Did you feel safe to say no?

Original poster
AngelaKennedy · 07/12/2022 12:19

I have never felt safe to say 'no', being pinned to the bathroom wall unless I do what he says. him holding my baby just months old threatening to leave in the middle of the night. even when I did leave, being hit across the face for saying the wrong thing to his then gf. not once is it okay to say 'no' to this guy. even now, he only wants to see the kids if I let him stay here in my flat and YES I let him in because like now, full of flu I can't parent, I have to have a break.

OP posts:
Original poster
AngelaKennedy · 07/12/2022 12:35

I didn't report anything to the police or other official stakeholders, for want of a quiet life. But I do have evidence in the form of audio files, pictures and threatening text messages. I'm not really strong enough to really use this stuff though, I just want to move on, I find it incredibly horrible. the course case is the final straw for me, I feel once that is out the way I will have the ammunition to say 'no'. Right now, he feels that he can produce a document to take responsibility for the director debts.. is he again filling me withe rubbish?

OP posts:
Original poster
AngelaKennedy · 07/12/2022 12:36

and what's the easiest and quickest way to get a restraining order?

OP posts:
stopbeeping · 07/12/2022 12:41

Newusernameaug · 07/12/2022 11:52

I’d represent myself and plead that you didn’t have the capacity to consent to any of this and were forced / coerced / manipulated into being a director and this is ongoing abuse.
gather everything you can to help support your case and start building yourself a file, in chronological order of any evidence you have.

I would also do this because it's true

If he withheld the info from you have you any evidence of you asking for the accounts from him by email by any chance

If not, he forged your signature to make you a director, didn't he? You didn't know he ever made you a director and you thought you were an employee.
You didn't take out those loanes, he did that behind your back didn't he, he forged your signature?

Tell them everything was forged and you didn't know

Or he withheld info from you

We had something similar although no debts with my husbands family withholding the info from him and creating new dividends

I called a solicitor who said he would take them to court for us,

They paid back the money and my husband resigned

As a director to the business when he was being denied this info he went nuclear explaining he would be liable too. He went into the bank with ID and requested five years of bank transactions and we went through them painstakingly to find the illicit transactions

But you had your signature forged and you thought you were an employee. You were coerced,

Itsoktogiveup · 07/12/2022 12:47

I’m so sorry all this has happened to you OP.

I don’t have legal advice to offer, but would encourage you to contact Women’s Aid, Citizen’s Advice Bureau, and any pro bono law clinics you can get to. Maybe also social services could advise on support that might be available?

It’s clear that this man was physically and emotionally and financially abusive to you when you were together, and has now weaponised the legal system against you to continue his financial and emotional abuse. What I don’t know is what if anything you can do to protect yourself.

Original poster
AngelaKennedy · 07/12/2022 12:51

I signed the loan papers, I did that. yes under duress but it is my signature. as for signing up for 'directorship' I can't honestly remember .. but my guess is again, it was my signature. it was many many years ago, going through IVF and I probably signed this directorship thing and totally forgot about it, that's probably what happened if I look back. BUT also, thoughout the years of living with this person, the number of bailiffs that turned up to my door over the years, a feeling of horror creeps in, and to extract yourself almost impossible and with new born twins now in the mix, almost impossible. I did try to resign on so many occasions, probably every year and not once did he register this or do anything about it until it was clearly too late and he with nothing to loose, and I with everything. it is a sob story I know. I have sent an enquiry to see how much a barrister will cost as 'direct access', I am not flush with funds since having an ..... ..... in my life.

OP posts:
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