company Law

GavinDoyle

Hi, I am doing a project for college and i am looking for some information in the following area

can a company director sign a company car over to his daughter for her birthday with the company struggling to pay off its creditors

and can a director take money from the companies bank account to pay his own mortgage

GavinDoyle

GavinDoyle wrote: »

Hi, I am doing a project for college and i am looking for some information in the following area

can a company director sign a company car over to his daughter for her birthday with the company struggling to pay off its creditors

and can a director take money from the companies bank account to pay his own mortgage

Read Courtney's book. Look at reckless/fraudulent trading, also look at fiduciary duties of directors.

Short answer to both is no.

What are you studying?

GavinDoyle

studying accountancy, just wasnt sure on these two points, i thought maybe he could sign over the car if the company was not struggling

and regarding the mortgage i thought maybe he could but the creditors could seek to have the money brought back into the company in order to pay them off

thanks for the help though, ill have to change parts of the assignment now

nuac

Gavin, best of luck with your studies.

Apply a little common sense to these issues.