Death of a director

Death of a director

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The sole director and shareholder of one of my clients has unexpectedly died. The beneficiary wishes the company to continue however as its very early days, the structure of this has yet to be decided. What are the legal implications? presumably a new direcor, even if only temporary has to be appointed asap? Do the banks need to be notified asap aswell and will this freeze the company bank accounts as this will make the company very difficult to continue to run? There is some dispute as to whether the executors are accepting appointment to act as executors. Any advice very gratefully received.

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By mrme89
07th Mar 2013 15:44

As I understand it …

As I understand it …

 

You should submit form 288B to notify the death at CH,and form 288A for the new director (beneficiary in the will). The only thing that do not have to be notified at the time are transfers of shares, these are reported on the Annual Return.

 

In terms of the bank account, whoever is the executor of the will should be able to co-sign anything for the bank. Company should therefore be able to run as normal.  

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By bernard michael
08th Mar 2013 09:25

If the banks have a personal gurantee from the deceased to support any borrowing they will cause you problems until an alternative is found.

The shares belong to the estate and will be disposed under the will, which obviously needs the executors to agree to act or if not to be replaced ASAP.You should consult a solicitor re this. 

This situation can get out of hand quickly and time is of the essence  

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