Hello all,

Thanks for all help in advance.

I am a director of a small internal decorating company and my co director (equal shares) is looking to resign as she is going overseas.

The company is not in the best shape and I will most probably look to pay off all debts and go back to work with a previous employer.

I will not be able to pay off all the debts straight away, but don't want to go down the administration route, ideally continuing the business until all debts are paid off over time, then close it down.

What implications should I be aware of? I don't want to be doing something wrong or left with all the liability. I read something in another thread about a director resigning in a previous tax year thus reducing his/her liability to the company - is this right?

Process/policies/best practice would be appreciated.

Many thanks.
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There are potentially so many implications and you need to obtain direct legal advice on this upon presenting the full facts. Implications will vary and depend who the creditors are and whether any personal guarantees are in place in the event the company is wound up.

If you have an accountant, you should make use of his/her time to obtain accurate advice on tax/accounting issues rather than relying on 'advice' given without the full facts. If you rely on bad advice you will only find yourself in a greater mess that may follow you even when the company is wound up.
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No personal guarantees.

I just wanted a little more information at this stage on the resignation process and what this means to the person leaving and what is left behind.

The financial year issue was confusing in another threat also.
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If a director resigns in a different fiscal year - does he or she have less liability for the current year?

Sorry, but could do with someone's thoughts asap.

Many thanks
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The directors in office at the time are responsible for anything coming to light unless there has been some wrongdoing involved. In that case it would be possible to bring charges against a previous director but normally a resigned director will have no liability at all after resigning and will generally sign a letter to that effect.
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