Appointed Director Without Consent In Phoenix
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Members (shareholders) can remove a director by resolution (s 203D (1)). This is despite anything in the company's constitution, an agreement between the company and the director or an agreement between any or all members of the company and the director.
If the company has gone out of business Get details of the administrator or receiver - the person who is dealing with settling the trader's debts. The names of those administrators will usually be on the website of the company that's gone bust. You'll need this information if you need to make a claim.
If your company is put into liquidation, responsibility for administering the company is passed to the liquidator. As a director, you must help the liquidator and provide information to them about the company's business, property, affairs and financial circumstances.
The directors' role Directors cannot use their powers after a liquidator has been appointed. They must help the liquidator, including providing the company's books and records, and a report about the company's affairs.
When a company enters liquidation, it provides its books and records to the liquidator. The liquidator goes through those records and decides a date where the company first became insolvent. If the records show any debts incurred after that date, the directors can be held personally liable for those debts.
When administrators are appointed then the directors' powers cease. They are still responsible for their previous actions though. Usually the administrators will either sell the business quickly or if they trade the company in administration they will make the directors redundant as employees.
Unless there is a special provision in the company's Articles of Association a director cannot be removed from office by the Board of Directors, and only the shareholders can remove a director. The Articles may provide a procedure for this; otherwise the statutory procedure must be used.
When a company enters liquidation, it provides its books and records to the liquidator. The liquidator goes through those records and decides a date where the company first became insolvent. If the records show any debts incurred after that date, the directors can be held personally liable for those debts.
It refers to the practice where the directors close down a failing or insolvent company, and subsequently establish a new company to continue the same business, often under a similar name. This manoeuvre allows them to avoid paying the old company's debts while maintaining the essence of their operations.
