Hi
i have a client company.The shareholder of the company is caymen island company and one appointed director handling day to day matters.Now due to some differences between Cayman island company shareholder and appointed director(not shareholder),the appointed director want to quit the company.So my questions are:
1) How the appointed director quit the company, do she need to file TM01 to CH or there might be one other director appointed before she resigns.The active shareholder is the caymen Island company.
2) Or they simply strike off the company but caymen island shareholder is reluctant to strike off the company.
3) Regarding company accounts,company have completed one year.Do we need to prepare and file CT 600 or just wait to strike off the company and then file CT600 after receiving HMRC letter to file accounts and ct600 for entire period.Also who will sign the company accounts and ct600.
Thanks in advance and apology for asking too many questions.
Replies (6)
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1) Legally a company must have 1 appointed director
2) The company must have ceased trading for 3 months before it can be struck off.
3) You should complete the company accounts and file the tax return before applying for strike off or HMRC will object and stop the strike off going ahead.
These are questions for the CI company that owns the shares. If they want to strike the company off, let them do so, but it is a very odd way of removing a director, especially one who from what you say is happy to walk without having to be pushed.
If they want to retain the company they will need to appoint at least one new director. In some ways it would be more convenient if they did so before the current one resigns, but it's not the end of the world if it happens in the reverse order.
The current director demits office by notifying the company that he is doing so. Notifying Companies House is for the company to do after he is gone (one reason why it is more convenient for a new director to be already in post) and nothing to do with the old director as such.
Yes of course if the company is not to be struck off it will have to prepare accounts. The new director will be the person to approve and sign them.
Well, surely shareholder has little choice, if director resign he resigns and intimation requires to be made to CH and to do this a director is needed.
The shareholder requires to either become a director or appoint/pay for someone else to be a nominee director- there are plenty of entities more than happy to take fees for acting in such a capacity so hard to see the issue.
Your client seems to be intent on making as many problems for themselves as possible. They can either strike the company off, or they can appoint a new director. You say they don't want to do either, but that is not an option.