So, I was right and you were wrong. Nothing new there. Stop making up lies or giving out wrong information and then I won’t have to keep correcting you. Or 'point scoring' as you call it.
Employees and Directors
- Thread starter yottie
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Poor Mottie tries doubling down on his pedantry, but the fact remains, in the context of this thread my points were entirely relevant
Sadly Mottie doesnt have much business experience, so isnt able to provide worthwhile advice
Keep digging.
I’m the managing director of the company I run, but not a shareholder. I have never had to offer a personal guarantee for any loan or mortgage that we’ve had over the last 18 years, nor has the business owner. All borrowing has been secured against the company’s assets.
I understand that, however my post stating one should be wary about any personal liabilities is very good advice.
It is normal practice these days for banks and landlords to insist on a personal guarantee.
You mean like a directors house for instance? Not all companies are in positive equity.
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The term Director doesn't necessarily mean Company Director. The employee needs to know if he is being offered a position as a company director or say a "Sales Director" etc. If he is being offered a position as a company director then he will have duties and obligations under the Companies Act as well as exposure to HMRC.
It would not be unreasonable for the company to pay for him to take some legal and accounting advice.
Directors can become personally liable if they perform their duties negligently. For example trading while insolvent, can make them personally liable for the debts. HMRC can also go after the individual for liabilities.
He should not enter in to any personal guarantees. His liabilities are to the company and he doesn't want to change that
Summary of duties here:
It would not be unreasonable for the company to pay for him to take some legal and accounting advice.
Directors can become personally liable if they perform their duties negligently. For example trading while insolvent, can make them personally liable for the debts. HMRC can also go after the individual for liabilities.
He should not enter in to any personal guarantees. His liabilities are to the company and he doesn't want to change that
Summary of duties here:
I absolutely agree that being aware of any personal liabilities is good advice.
However, the promotion to being a director may be a good career move and the person who's had the opportunity offered shouldn't decline it on the basis that there might be personal liabilities involved without finding out if it's true or not.
The requirement for a PG depends on the size of the business in my experience.
Securing a loan against a directors house would be a personal guarantee.
In my experience, loans are often secured against the asset the loan is being used for, eg a machine or a car.
With the little info the OP has given, it would be wrong to scaremonger.
