QuoteReplyTopic: Directors liability and property Posted: 16/July/2012 at 16:12
If I dissolved my directorship in a company and that company goes into liquidation, bankruptcy etc, could I be exposed to lose my house if held joint tenancy or only half my house if it is held 50% with my wife as tenants in common?
Notably I am not aware of the company facing these events however want to know if the property would be better held in tenants in common.
the answer is if you give a personal guarantee and you are a director then the creditors can apply to get half your house and they have the power to sell it, if you own half, irrespective of whether its in joint names or as tennants in common.
Otherwise the liquidator has to prove you are personally liable by trading insolvently, which is harder and more expensive to do for him but still possible.
Edited by rambler1 - 16/July/2012 at 16:52
Luke 11 46: Woe unto you also, ye lawyers! For you load men with burdens that are difficult to carry, and you yourselves won't even lift one finger to help carry those burdens.
Thank you Rambler1. I thought as much however needed a second opinion in case there was something I missed in my understanding. At present I am no longer involved and whilst the company is trading I am concerned this will not be the case in 12 months time given how the business has been operated.
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