Limited company stops trading - the rules?

Limited company stops trading - the rules?

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Limited company has two directors. Each is an equal shareholder. One director unilaterally resigns as a director and walks out of the business. Both remain equal shareholders. Can the remaining director do the same thing and commence trading in a sole capacity? Where can I find the regulations on this matter?

Thank you in advance for your contributions.

Replies (3)

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By petersaxton
11th Oct 2012 09:02

Advice

The other director can start trading as a sole trader subject to any legal impediments such as shareholder agreements, passing off etc. I would recommend that the limited company was wound up properly though.

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By zebaa
11th Oct 2012 15:45

companies act...

...would be a good place, but there is a lot to read & most will not find it helpful. Remember, most law is about what you can NOT do & in your question you ask the reverse. The answer to your question, by the way, is yes the second director can resign. Companies House will wind the company up when they get round to it which may be between 1 and 2 years, but they will do it 'properly' just in case you have any doubts. Not being a director means they really should not answer letters sent to the company too, which some folk find difficult.

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By [email protected]
18th Mar 2013 22:06

dissolving company

 

   I

myself and my co director havent been seen eye to eye as far as the business has been going the last couple of years .it started when i got taken ill i was off for 3 months in which she took double income to pay for doing "double amount of work " very questionable as we have 25 employees  so business can run easily without one of us .

Anyway i decided that things werent working out and it was becoming very stressful as we were unable to communicate properly ,so i put foreward that either she bought me out  i bought her out or i opened another branch under the same name .

She quite bluntly said that there was no way i was going to buy her out , I suggested she thought about it for a few days ,but she didnt want to .

I dont know where i go from here i have spoken to soliciter and accountant ,but they have worked for us both .

We are completely joint directors and have had the business for 15 years 12 of those as a company .Our accountant suggested that she buy me out for her share in a years income

But i find that hard to believe surely i should have a percentage related to building up a business for 15 years

Sally

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