Company dissolved with "active" overdraft

Company dissolved with "active" overdraft

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We have a client who has a company that has been struck off by Companies House owing to outstanding accounts/annual returns etc. The company has an overdraft facility that is apparently still in existence i.e. the bank are seemingly unaware of the matter and intend to review the facility in the coming months - essentially, the account is still open and active. Has anyone come across a similar situation - one would think that the account would have been automatically closed on the "death" of the company and the bank would incur a loss.

The director is worried that he has done something underhand yet has no intention (at the moment) anyway of repaying the overdraft. I have advised him to approach the bank and ask them to transfer the facility to his other "live and active" company. Such a process, I imagine, is not as simple as all that for the bank but would seem a sensible way forward considering everything.

Could the director be accused of doing anything illegal? Is there anything he should do? Any views, much appreciated. 

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By bernard michael
11th Jan 2012 15:53

Has the Director signed a personal guarantee? If not I don't understand your advice as they can't persue him. It might make life difficult for the remaining if the company if they throw their toys out of the pram. Best advice is get another bank 

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