Keep Your Life’s Work Safe If You Are Not Here

Keep Your Life’s Work Safe If You Are Not Here

As a company owner it is important to secure its future if you are not around. Without preparation, chaos could ensue for those left behind. As part of the business planning legal advice should be sought to secure your company’s future. The following case highlights the problems caused by the unexpected death of a company’s owner.

The company had been set up by the dead man as he owned all the shares and was the only director. On his death there was no access to bank accounts as they were frozen, therefore no bills could be paid including tax and wages. The company was floundering and the executors applied to the court to keep the business running.

The Court upheld the application from the executors under Section 125 of the Companies Act 2006 and ordered a change on the companies register to change from the deceased as sole director to the executors as the shareholders. This would allow for a director to be appointed and for the company to return to its normal working.

This was unusual as in the normal course of events the Will would have been sent for Probate before these decisions could be made. The Court acknowledged that in this case a resolution was needed to enable the company to pay wages, VAT and any delay would have caused significant damage to the business.

Any business owner should put plans in place so should something happen to them the company is protected along with their loved ones.

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