DH just found out he's director of the family business...but never been told !!

[Steppy1]

We've just discovered that DH is a director of the family investment company something that he's been trying to get involved with for the past 5 years. In previous conversations with his father he has, politely been told pretty much to "mind his own business" or "you don't need to worry about that" as a reaction to any questions that he's asked about the familybusiness (DH is a shareholder)...so we're gobsmacked to now find out that he (DH !) is listed as one of two Directors of the company (FIL being the other). My understanding is that you have certain legal responsibilities as to the running of a company and that decisions cannot be made without the agreement of both directors. If anybody oout there can throw any light or give us some guidance that would be great..... Me thinks a visit to a solicitor is going to be in order,!!

Sounds a bit odd, you know. Is it an English company? Where's the list of directors you're referring to? If it's an English company and he's listed as director on Companies House's records, that looks dodgy - because the form that gets filed at Companies House naming the director requires a consent signature by the person named. So you'd need to see a solicitor for more than just to know what's involved in being a director.

sounds weird - as bink said, at the very least directors' signatures are usually required for various stuff.

Dh and his brother are Directors on their Father's business, have been for years. But never had to be involved or sign anything.

Someone's not being honest here - your dh as a director would I assume have to have signed the annual accounts etc, done his tax returns etc etc But doesn't mean he has a controlling interest in the company.

thank you...Yes it is an English Limited company and DH IS listed as one of two directors...I thought too that both parties had to sign things like year end accounts. It turns out that DH has been a director since 1992 (!!!!!) when the business was passed over from his gran to her son (DH's Dad). At that time DH was an executor of her will and remembers signing "lots of papers" because her estate was very complicated.... should the company accountants have been sending a copy of the accounts then (which they havn't) DH is also listed as a director on the company return. I think (but then I'm cynical) that FIL is hiding something.........

We have a ltd company of which dp is a director but he couldn't tell the first thing about it from a tax or admin point of view..but I'm pretty sure he had to sign when we first incorporated..only my signature required now. Technically we are supposed to have annual meetings but in fact we don't. He doesn't look at the accounts or tax returns or sign them, I do.

..but it's also the case isn't it, that if his father did something really stupid with the company and it went, as a result of his actions, into liquidation that DH would also then be effectively blacklisted as a director. I know the liability is only limited to the assetts within the company but surely if you're a director of a company you have a legal responsibility to ensure that it is being run in a responsible fashion....I don't think the tax man or companies house would be sympathetic to a "but I wasn't actually running the company" when you're listed on legal documentation as a company director.....

Well it's completely possible that one of the forms he signed in 1992 would have been a Form 288 - which is the appointment & consent form. You can ask Cos Hse for a copy of the company file, that'll show you for certain.

Anyway, thoroughly recommend you speak to solicitors - look for one that specialises in small corporates - most of them will have a brochure that sets out the basic Director's Duties, and that will be your place to start. (You might also be able to get one from your bank's small business adviser too - they're pretty usual things.)

...and as nothings ever been mentioned to him, and this reluctance to discuss...is there something to hide ??????

how did you find out and what does fil say?

Oh, and as regards FIL, he ought to have been keeping a file of Board minutes documenting the decisions made by the directors on behalf of the company. Your dh should ask to see that.

DH wants to realise his share holding from the company asked me to get a copy of latest accounts from companies house website...found out then... being an avoider of any confrontation hasn't yet spoken to his father...but his father has just called and I HOPE that's he's going to talk to him about it now.. !

FIl and Dh now meeting next week ("you'll only get to see the company accounts, there's nothing else for you" is a great starting point...NOT !!!! FIL seems very defensive and DH isn't trying to "get" anything...his concern relates to when his dad isn't around and that he'll (DH) be responsible for sorting something out of which he has no knowledge ie who the contacts are, contracts are with, etc etc. The family also had a substaintial inheritance tax bill when FIL inherited business from his parents and DH thinks there are things to do to reduce liability...or else assetts will have to be sold to pay tax bill...and those assetts will then incur capital gains tax...vicious circle !!!