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Lending To Former Director
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I’m in the UK. Am I able to lend the director of a company in liquidation, that I am purchasing the assets of, £*?
Hi ****,
To assist you better, can you clarify if the company is currently in compulsory liquidation or voluntary liquidation? This will help determine the legality and implications of lending money to the director.
Thank you!
To assist you better, can you clarify if the company is currently in compulsory liquidation or voluntary liquidation? This will help determine the legality and implications of lending money to the director.
Thank you!
Members voluntary liquidation
Hi ****,
In a Members' Voluntary Liquidation (MVL) in the UK, lending to the director of the company being liquidated could be complex. Key points to consider:
- Company assets must be used to pay off debts first.
- Any transaction must be fair and transparent.
Consult a solicitor for specific advice.
Do you need information on finding a solicitor near you?
In a Members' Voluntary Liquidation (MVL) in the UK, lending to the director of the company being liquidated could be complex. Key points to consider:
- Company assets must be used to pay off debts first.
- Any transaction must be fair and transparent.
Consult a solicitor for specific advice.
Do you need information on finding a solicitor near you?
I have bought the assets at fair market value
Hi ****,
Since you've already purchased the assets at fair market value, lending £*,* to the director in a Members' Voluntary Liquidation (MVL) is possible but must be handled carefully. Key points:
- Ensure all company debts are settled.
- Maintain transparency and fairness.
- Consult a solicitor for detailed guidance.
Would you like information on finding a solicitor near you?
Since you've already purchased the assets at fair market value, lending £*,* to the director in a Members' Voluntary Liquidation (MVL) is possible but must be handled carefully. Key points:
- Ensure all company debts are settled.
- Maintain transparency and fairness.
- Consult a solicitor for detailed guidance.
Would you like information on finding a solicitor near you?
Why would company debts have to be settled before I could loan the money?
Hi ****,
In a Members' Voluntary Liquidation (MVL) in the UK, settling company debts before making any loans is crucial for these reasons:
- **Legal Obligation**: The company must ensure creditors are paid first.
- **Transparency**: Ensures fair treatment of all parties.
- **Compliance**: Avoids potential legal complications.
Would you like assistance in finding a solicitor near you for more detailed advice?
In a Members' Voluntary Liquidation (MVL) in the UK, settling company debts before making any loans is crucial for these reasons:
- **Legal Obligation**: The company must ensure creditors are paid first.
- **Transparency**: Ensures fair treatment of all parties.
- **Compliance**: Avoids potential legal complications.
Would you like assistance in finding a solicitor near you for more detailed advice?
This would be a personal loan
Hi ****,
If it's a personal loan, not from the company, company debts being settled isn't a concern. However, ensure:
- **Clear Agreement**: Draft a loan agreement.
- **Repayment Terms**: Define terms clearly.
- **Legal Advice**: Consult a solicitor for personal loan terms and implications.
Would you like assistance in finding a solicitor near you?
If it's a personal loan, not from the company, company debts being settled isn't a concern. However, ensure:
- **Clear Agreement**: Draft a loan agreement.
- **Repayment Terms**: Define terms clearly.
- **Legal Advice**: Consult a solicitor for personal loan terms and implications.
Would you like assistance in finding a solicitor near you?
So a personal loan to the former director would be legally acceptable even though I am involved in the purchase of the company assets at fair market value?
Hi ****,
Yes, a personal loan to the former director can be legally acceptable even if you are involved in purchasing the company assets at fair market value. Ensure:
- **Clear Agreement**: Draft a detailed loan agreement.
- **Repayment Terms**: Clearly define the terms.
- **Legal Advice**: Consult a solicitor for specific implications.
Would you like assistance in finding a solicitor near you?
Yes, a personal loan to the former director can be legally acceptable even if you are involved in purchasing the company assets at fair market value. Ensure:
- **Clear Agreement**: Draft a detailed loan agreement.
- **Repayment Terms**: Clearly define the terms.
- **Legal Advice**: Consult a solicitor for specific implications.
Would you like assistance in finding a solicitor near you?
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