liability of unmarried partners

jusdevin

New to Boards but hope someone can help. My partner,to whom I am not married, is opening a retail business . We have a joint mortgage on our house. I will not be a director but will hold a minimum amount of shares. If my partner becomes liable under company rules eg for reckless trading will our house be at risk?
Also when does the 1 directorship rule for private limited companies come into effect?

TheCostumeShop.ie: Ronan

No the house would not be at risk if it's your principle home.

CompanyBureau

If you aren't a Director you aren't liable for anthing. Single director companies will be possible when the new companies bill is passed which will be 2014 by the look of things..

jusdevin

Thanks for the replies. Just to clarify, we are tenants in common. I have been told that if my partner is liable then the house could be sold and the proceeds divided to obtain what he owes. If we got married the fact that the house would be a family home wouldn't make any difference, any company debts would be paid off in the same way. Is this correct? I am getting conflicting advice!

Bandara

Your home will not be at risk

TheCostumeShop.ie: Ronan

To clarify, he could be liable to sell his assets, but you can't sell half a house unless he sells it to you (and you could value of the option to buy at a mere €1). Basically they can't touch your assets so your safe.