Never come across this before.
One director (DIR A) of the company maintains all the bookkeeping records, completes the accounts and submits to HMRC and Companies House.
My client, the other director (DIR A) of the same company has queried the balance of of DIR A's Directors Loan Account.
DIR A insists that the balance is correct, but having examined the company bank statements, there seems to be an anomoly - and quite a few thousand pounds worth!!!
DIR A refuses to release any schedules and such like to DIR B, insisting that the accounts have been 'signed-off' and there is no 'going back'.
What can DIR B action for DIR A to release the information?
Thanks
Replies (5)
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So your client has access to the bank statements (you say they have been examined) but not to the year end working papers?
Does the other director prepare the accounts himself, or is an accountant involved?
When the other director says that the accounts have been signed off, what does he mean? Were they jointly approved?
Depends how far you want to take it but the last resort is a legal battle.
It's not true that there's "no going back". Amended accounts can be submitted.
Hours of fun
I'd stay out of it myself.
but state the facts to Dir A, ie by not releasing anything Dir B will assume you are defrauding the company, regardless of whether you are or are not.
Fraud is a good word to drop in.
Still good money in business splitting to long as you take your cut up front!