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Money owed advise please

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  • Money owed advise please

    Hi Strange case here
    I am self employed but sort of sub contracted to do work for a company for 12 years . April 2008 owner sold his business to another on working out my commission for March 2008 he deducted £350 in error ie underpaid me when I found out i told him and he said sorry but cant give you another cheque as the "new company " had got cheque book etc and told me to get it from them . This I tried to do and cut long story short this company were "rogues " owed me lots of commissions and in end took them to court and got judgement for £6500 however same day they went into administration so will get nothing .
    I am now trying to get money ie £350 from the previous owner above the owner was negligent in deducting this money from my commission he has filed to dissolve the old company and Ive blocked this at companies house at present due to my "complaint " . Im trying a small claim against the company that is being dissolved and the owner in personal capacity due to his negligence court have of own initiative said I need to give cause why the "owner " part of claim should not be struck out leaving action against company only . If this happens company has no directors and no assets so ill get nothing . Is there anything i can do to keep the owner in personal capacity liable ? Regards Gaz
    Last edited by Amethyst; 7th August 2009, 08:21:AM. Reason: removed caggism

  • #2
    Re: Money owed advise please

    The owner of the company is only liable if he has personally guaranteed the debts of the company. This is set out in various company legislation and cannot be overruled by a county court.

    In any claim, he who asserts must prove and the court are simply asking you to show that the owner of the company personally owes this money and not the company. Unless you can show that, then the claim can only proceed against the company.

    Comment


    • #3
      Re: Money owed advise please

      Originally posted by Cetelco View Post
      The owner of the company is only liable if he has personally guaranteed the debts of the company. This is set out in various company legislation and cannot be overruled by a county court.

      In any claim, he who asserts must prove and the court are simply asking you to show that the owner of the company personally owes this money and not the company. Unless you can show that, then the claim can only proceed against the company.
      Unfortunately there are 2 type of self employed, those who own a company and decide who, when, where and for how much they work for, this covers people like Builders, electricians, plumbers etc, the other types are those who supply a contract of service, i.e sub contractors, who work for another entity and are liable for their own tax.
      Unless certain terms of protection are drawn up into the original agreement, you have no grounds for redemption, under contract law/tort law.
      Your only redress would be a civil matter, if you could prove the issuer of your contract was negligant (i.e they knew they was in ****e street).

      Comment


      • #4
        Re: Money owed advise please

        The employment status of the claimant is not relevant to the question of whether or not there exists a claim against the owner of the company personally or the company. On the information provided in the first post there are no grounds for a personal claim against the owner of the company and this is something that the court seems to have pointed out.

        Suing the owner of the limited company individually without having reason for a personal claim against that person which is separate from their role as part of the limited company is bound to fail. People who own or operate a limited company are not liable for its corporate debts, this is the whole point of forming a limited company.

        Comment

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