Bank trying to recover an unsecured overdraft from a dissolved company

Bank trying to recover an unsecured overdraft...

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I' m being pursed for £1800 for an unsecured overdraft owed to a business bank, the company had been dormant for sometime ,and was eventually struck off on the 6/11/2007 by companies house , i was unaware of this until recently, 2/3/2009 ,i have now notified the bank ,whom say they need notification from companies house; whom i'm going to contact and ask them to do this.The company has only recently become seriously overdrawn from its agreed limit of £1000 to £1800 ,due to business card attached to account reclaiming all its money at once ie forcing me to exceed the agreed over draft limit, i have been trying to repay the overdraft for sometime but the charges on the account have made it impossible to achieve this since i have been struggling financially for sometime now,the account has not been used for my own ends , and the only time i have used it was to pay money into it to try and reduce debt. I know that the account shouldn't have been used since the company had been dissolved ,however,has i stated earlier i was unaware of this .Am i still liable for this debt under the current circumstances given that the company was ltd and now dissolved. The Bank has now instructed solictors to issue legal proceedings against me ie threating to take me to the county courts, if i don't repay tje debt that has now risen to £2158.54 ,should i pay and am i liable?

Thanx indvance
for any advice given
Mark
Mark harrison

Replies (6)

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By carnmores
08th Jun 2009 19:21

double edged
some banks have good control systems for applications to strike off let alone dissolved companies, they must also be partly to blame

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By User deleted
08th Jun 2009 16:18

Further thought
If the company card had a balance due, and the card was attached to the business account then the company's borrowings were the total of the two accounts together. Thus the money was always due and not just when it was transferred to the bank account.

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Euan's picture
By Euan MacLennan
08th Jun 2009 12:56

I am puzzled
£800 "has only recently" been charged to the business card, but "the company had been dormant for sometime" before it "was eventually struck off on the 6/11/2007" and "the account has not been used for my own ends".

So, as it was neither business nor private, what was the £800 of expenditure?

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By martinfoley07
08th Jun 2009 12:30

"given that the company was limited"
This is one of the most common and significant misconceptions about limited liability that exist - even amongst accountants, let alone business folk.

Limited liability applies to shareholders (and can be lifted under certain circumstances).

Limited liability most assuredly does NOT apply to directors (or shadow directors).
(nice for crooks and rogues if it did apply!!)

There are any number of strange things going on here, Mark, if your post is remotely accurate as to "facts". Whether your post is accurate or inaccurate, you should seek specific advice in your detailed circumstances ; a blog is unlikely to be able to provide detailed, meaningful help in context of the situation you describe.

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By User deleted
08th Jun 2009 12:26

Agree
Have to go with the previous answer. Director's have responsibilities and these duties can't be brushed aside with an "i wasn't aware" kind of statement. That being said you should be able to cut a deal with the bank. There's no mileage in them increasing a debt that can't be paid.

Front up and talk to them.

And next time you sign a 288a be aware of the implications, sure it looks good on a business card but it does come with lot of duties.

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By occca
08th Jun 2009 11:02

Hmmmmm
Sorry but I find it very difficult to believe that you did not know that the company was struck off 18 months previous. Companies House would have written to the directors and the registered office numerous times to advise that this was going to happen.

Were your accountants not aware?

What was owed to the bank at 06/11/07 when the company was dissolved?

I think they have good cause to come after you for anything that is owed now that is in excess to what was owed at 06/11/07. Strange how the bank accounts were not frozen on dissolution though.

As a director of the company it is your responsibility to deal with the day to day affairs, so the fact that you claim not to know it had been dissolved will be very difficult to argue.

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