Director frozen out: What to do next

 

An AccountingWEB member faced a dilemma when his company accountant refused to deal with financial irregularities he noticed.

Shunt13 posted on Any Answers for advice on appointing an external auditor to the company, in which he had a 50% stake.

His co-director was also unwilling to acknowledge irregularities which included £18,000 in overdrafts run up over the last four years. In Shunt13's view, the company accountant had a close relationship with the other director and was working “in cahoots” with him.

“I got abused, screamed at, it has been really unpleasant,” said the AccountingWEB member, who has been kept at arms-length from the accounts.

Shunt believed...

Continued...

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Comments

Accountant

fionamcke | | Permalink

Has anyone asked about the accountant? Is he a member of a recognised Institute, in which case he should be reported to that Institute. If a member of an Institute he should hold some form of professional indemnity insurance, is it possible a claim can be made against that for losses incurred?

legal route?

evely | | Permalink

The only thing that has not been mentioned is get legal advice - protect oneself by making sure it is documented and recorded what you are doing etc otherwise they may twist it around and you become liable for.... well who knows?

Directors' duties

JohnBanfield | | Permalink

Take a look at the Directors' duties contained within the CA 2006, Chapter 2, sections 170-187, to see what applies to the Director in terms of remedies available.

John