Hi, I would really appreciate your thoughts on the following.
I'm a Company director in a small start up Ltd company together with a shareholder/founder director. Founder was the director since the beginning and is also a shareholder/director in Foreign company.
Initially, Company was financed through loans by the Founder.
Since 2016 two more of his friends have become Company shareholders.
In 2017 the foreign Company became the main customer of the Company as Founder found a demand for the product in his own country. This was until now.
In September 2020 Founder decided to close the UK Company realising that the product was not viable in the UK market. Despite outstanding invoices, Founder has announced that the foreign Company won't make any payments until Company is fully closed, instead he will provide loans to the Company to make final payments personally. Invoices were raised based on service agreements which were signed by me first, then passed on to the Founder when he came to the UK, he would then bring them back signed and stamped by him on his next visit to the UK. This good faith process (sometimes agreements were signed much later) was followed since 2017 by the previous two directors too. Invoices for June-September 20 have been paid and have agreements signed by both parties. Outstanding invoices are for Jan-May 2020 period.
I'm not strong in CT but this looks like tax evasion/avoidance - Founder is avoiding higher CT for 2020 and is driving Company insolvent. Am I right to think so? If I am, what is my course of action as there is an obvious conflict of interest, as a consequence of which Founder can not make decisions.
Is there anything else to consider?
I hope I was clear. Many thanks.