Company winding up, director needs to buyback van

Ltd Company winding up and director needs his van back

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My partner had a ltd company with another guy and they have decided to go seperate ways so its winding up, he has decided to go alone and his personal van which has always been registered to him as he bought before the partnership. The accountant has said he needs to buy it back from the company thats winding up at book value. Why is this when there was never any monetary exchange and it is in his name not company? She has said it was used in the accounts, its not very amicable and the accountant is friends with the other partner. The business was only going for two years.

Replies (27)

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By rmillaree
03rd Mar 2023 15:54

"Why is this when there was never any monetary exchange and it is in his name not company?"

Its speculation on my part but its highly likely the accountant had indeed valued van previously and credited directors loan acount fro value - which would be practicably spekaing the same as paying director for the van. Accountant is the one best placed to confirm that is the case.

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Replying to rmillaree:
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By Tax Dragon
03rd Mar 2023 16:01

Ianaa but... something had to balance the book cost.

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Replying to rmillaree:
By Ruddles
03rd Mar 2023 16:09

The company might well have "paid for the van". But is there anything to evidence actual transfer of ownership? (Other than some possibly dubious accounting entries.)

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Replying to Ruddles:
By Ruddles
03rd Mar 2023 16:34

It is possible, of course, that the client may be in an even worse position - if, say, the 'transfer' of the van had in fact merely been a book entry creating a credit DLA. If that DLA has subsequently been fully drawn down then the reversal of the incorrect accounting would leave him with an overdrawn DLA equal to the original 'cost'.

But I agree -it is first and foremost a legal matter.

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RLI
By lionofludesch
03rd Mar 2023 16:14

This is another legal question.

You may need a solicitor.

Or, you may like to say, "it's my van, my name's on the registration document, sue me."

Either way, an accountant's forum is not the place to be asking legal questions. It's like asking your dentist for an eye test.

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Replying to lionofludesch:
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By frankfx
03rd Mar 2023 16:29

lionofludesch wrote:

This is another legal question.

You may need a solicitor.

Try to get back to amicable terms.

If solicitors become involved wave good bye to the van.....costs could escalate.

Also if you and fellow director are ping ponging questions to accountant. Then their fees could escalate.

Accountant should be sufficiently professional to manage,both parties, expectations.

But all three of you need to act quickly.

To avoid financial distress and disappointment.

Are you both directors or just one of you?
An important point to grasp.

Or, you may like to say, "it's my van, my name's on the registration document, sue me."

Either way, an accountant's forum is not the place to be asking legal questions. It's like asking your dentist for an eye test.

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Replying to frankfx:
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By lionofludesch
03rd Mar 2023 17:03

frankfx wrote:

lionofludesch wrote:

This is another legal question.

You may need a solicitor.

Try to get back to amicable terms.

If solicitors become involved wave good bye to the van.....costs could escalate.

Also if you and fellow director are ping ponging questions to accountant. Then their fees could escalate.

Accountant should be sufficiently professional to manage,both parties, expectations.

But all three of you need to act quickly.

To avoid financial distress and disappointment.

Are you both directors or just one of you?
An important point to grasp.

Or, you may like to say, "it's my van, my name's on the registration document, sue me."

Either way, an accountant's forum is not the place to be asking legal questions. It's like asking your dentist for an eye test.

I deny saying all that, frank. I invite you to consider whether you're making stuff up there. Maybe consider your posting quotes techniques.

Who insured this van? Who paid for VED ? Who paid for servicing and repairing?

Just a few things to consider when the OP is considering ownership and visiting his solicitor.

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Replying to lionofludesch:
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By frankfx
03rd Mar 2023 17:30

The Accountingweb Gremlin seems to be at work.

I clicked "post reply" relying on assurances that the AW software is infallible.

Those damned pesky assurances can lead to humiliation, in some quarters.

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Replying to frankfx:
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By lionofludesch
03rd Mar 2023 18:01

frankfx wrote:

The Accountingweb Gremlin seems to be at work.

I clicked "post reply" relying on assurances that the AW software is infallible.

Those damned pesky assurances can lead to humiliation, in some quarters.

Mmmm - I think you've added text in the middle of a quote, rather than the end.

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By Hamway
06th Mar 2023 08:30

Thanks for your replies. In answer to some other questions, no i'm not a director i am his girlfriensd/partner whatever you want to call it.
So thank you to some that have indeed given some helpful advice.
I guess i was wrong thinking that as an accountant has dealt with the company and all accounting entires beforehand that another accountant may be able to shed some light and some advice to a non accountant.
But to the person who quote"Either way, an accountant's forum is not the place to be asking legal questions. It's like asking your dentist for an eye test.
Your just rude sarcasm is the lowest form of wit.

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Replying to Hamway:
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By Leywood
06th Mar 2023 08:56

There was no rudeness.

That wasn’t sarcasm, it was an analogy.

Another accountant could indeed provide advice, but only if they can find the other half of the transaction. Folk have provided some suggestions as to what the other half could be. So your boyfriend can ask your existing Accountant.

If your boyfriend wants a definitive answer from another Accountant, you have to provide the prior workings. Plus pay for their response. You don’t have any right to any answers, it’s not your company.

Anything else is a legal issue.

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Replying to Hamway:
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By lionofludesch
06th Mar 2023 09:12

Hamway wrote:

But to the person who quote"Either way, an accountant's forum is not the place to be asking legal questions. It's like asking your dentist for an eye test.
Your just rude sarcasm is the lowest form of wit.

Another satisfied customer.

And what did you think of the advice in the rest of the post ?

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Replying to lionofludesch:
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By Hamway
06th Mar 2023 09:19

The Rest of the posts were very helpful and i will pass on the information to him, he is not very good with computers or techy, more a manual person hence why i asked the question.
I googled the question first and it gave me this forum not a solicitor, i'm not an accountant so i wouldn't know it was a legal issue. So thanks for responces much appreciated.

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Replying to Hamway:
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By Leywood
06th Mar 2023 09:25

I don’t hear an apology for your inappropriate dig!

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Replying to Leywood:
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By Hamway
06th Mar 2023 09:30

It's not innappropriate though as a non accountant joe bloggs how could i possibly know it was a legal question, google sent me here in the first place if i'd have known i wouldn't have asked.

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Replying to Hamway:
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By Leywood
06th Mar 2023 09:49

You might not have understood it wasnt an Accountancy question, BUT the dig you made was claiming the poster was being scarcastic. It has been explained that the comment was NOT scarcastic. The poster used an example to explain why the request was inappropriate in the first instance, in an effort to increase your understanding. In other words the poster did not deserve you having a pop at him and and accusing him of being sarcastic. For that you owe him an apology!

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Replying to Leywood:
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By Hamway
06th Mar 2023 09:57

Having re read yes i can see it in the context it was meant now so i apologise to Lion fludesh

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Replying to Hamway:
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By lionofludesch
06th Mar 2023 11:05

Hamway wrote:

It's not innappropriate though as a non accountant joe bloggs how could i possibly know it was a legal question, google sent me here in the first place if i'd have known i wouldn't have asked.

Indeed. How could you possibly know ?

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
06th Mar 2023 10:34

He needs to revert back to the accountant for a more detailed explanation.

Assuming the van does belong to the company, if it is being liquidated he can offer to buy it back via the Liquidator.

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Replying to Justin Bryant:
Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
06th Mar 2023 10:53

That article is referring to a solvent MVL.

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Replying to Insolvency Practitioner:
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By Justin Bryant
06th Mar 2023 11:23

That's not much of an answer/comment is it? So what's the difference re my point (citing relevant case law/legislation please and with links if possible)?

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Replying to Justin Bryant:
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By Justin Bryant
06th Mar 2023 11:42

Don't worry. I have worked out what your point is. But then if it's insolvent by just £1 perhaps it doesn't matter etc.

Perhaps the company can be made sufficiently solvent with debt/equity swaps etc. (to enable the asset set-off trick).

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Replying to Justin Bryant:
Stepurhan
By stepurhan
06th Mar 2023 11:42

Justin Bryant wrote:

That's not much of an answer/comment is it? So what's the difference re my point (citing relevant case law/legislation please and with links if possible)?

Re citing relevant case law/legislation.

How about you doing that first. You keep on asking for others to do it, but you never do it yourself.

As it stands, you have just provided a link to a blog post which itself only contains a link to, and quote from, HMRC's manuals. That's not much of an answer/comment is it. You haven't even explained what a loan write-off has to do with someone getting a van back they may never have transferred to the company.

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Replying to Justin Bryant:
By Ruddles
06th Mar 2023 10:56

No

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Replying to Ruddles:
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By Justin Bryant
06th Mar 2023 11:19

Helpful as ever I note in your comments. Pray why not?

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Replying to Justin Bryant:
By Ruddles
06th Mar 2023 11:52

Stepurhan has explained why not. The question was about an individual having to buy back a van that they may or may not have transferred to their company .

Please explain the relevance of that to the release of an overdrawn loan account in a liquidation.

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