Please advise me on new company system

infoinfoinfo

Hi,

I have a question regarding newly formed company. We have set up a company, registered with 2 directors and 1 secretary.

My question is, i am not on the company registration documents, i am a boyfriend of one of the directors. Can i act on behalf of the company ( without being employed by the company ). Can i represent the company when dealing with phone companies, banks, and other businesses?

Could i possibly do it based on letter of authorization from on of the directors?

Any advice is much appreciated.

Thank you

Corkbah

so you are not part of the company ...yet want to represent the company ?

I would guess you would require permission from the company directors to represent them (not just your girlfriend the other people involved also she has only 1/3 of a vote and could be outvoted if the others don't think its right)

would you be looking for money (ie payment) for your representations or are you simply looking to help out this new company when it suits you ? or possibly helping the GF out to build her business ?

Dealing with phone companies, banks etc .... a letter of authority would probably be required to represent them (they would need to contact the relevant companies and have you as an authorised contact) - but you would most likely NOT be allowed withdraw funds unless they really trust you and to be honest I cant see them doing that (no offence intended) - its their business, if you can help up with building it - brilliant, if you start to get in the way or are restricted by the "rules and regulations" of other businesses - then accept that there is lots of red tape and hoops to jump - which may make it too awkward.

if you can help your GF ...brilliant ..but remember ...this is her business, her financial affairs, this is her "baby" .... dont be surprised if your offer to help is refused.

infoinfoinfo

Thanks for reply.

Yes, just help her build the business up, take care of some things for her.

There are only 2 people involved. 2 directors from which 1 is secretary as well ( my girlfriend ).

Both would be fine with me acting on behalf of the company. Do you think that letter from solicitor signed by both of directors giving me authorization would be enough? Would for example phone company even check whether i am employed by the company?

Thanks a lot

Corkbah

infoinfoinfo wrote: »

Thanks for reply.

Yes, just help her build the business up, take care of some things for her.

There are only 2 people involved. 2 directors from which 1 is secretary as well ( my girlfriend ).

Both would be fine with me acting on behalf of the company. Do you think that letter from solicitor signed by both of directors giving me authorization would be enough? Would for example phone company even check whether i am employed by the company?

Thanks a lot

they (one or both of the directors) would need to contact the relevant companies and have you added as an authorised contact, it is possible to have someone deal with the "crap" while the directors take care of making money - but be prepared that this could take a lot of your time and you do not receive any reward for it..... if the company makes profits they are likely to be split 30:30:40 between the company and its directors (with each of the directors getting 30% and the company gettign 40% re-invested for next year)

Graham

Corkbah wrote: »

if the company makes profits they are likely to be split 30:30:40 between the company and its directors (with each of the directors getting 30% and the company gettign 40% re-invested for next year)

From the information the OP has given how are you able to deduce the shareholdings of the directors and how they have agreed to split any profits?

Corkbah

Graham wrote: »

From the information the OP has given how are you able to deduce the shareholdings of the directors and how they have agreed to split any profits?

I said "likely" .... it makes sense that both directors take an equal share and that the company has money re-invested ( it was more to make the point that the OP will be unlikely to receive any monies for all his work - unless the GF decides to treat him)

infoinfoinfo

Thanks for answers.

The profit i dont really care about. Stays in the family.

My only concern is that i will go ahead and ring for example phone company to set up new account. I will provide them with all info they require as obviously i have access to it. Will they be dealing with me without any issues?

I thought i get a letter drawn up by solicitor or notary that will authorize me to represent/act on behalf of the company, have it signed by directors/board and than present it if required. One universal letter.

Just to add, it is small start up without any employees, online business that can be run by couple of people. I am not talking about big company or big operations.

So my question is, is that possible? Is that normal practice? Can i run the basic operation/office of the company without being employed?

Thanks for help

Corkbah

infoinfoinfo wrote: »

Thanks for answers.

The profit i dont really care about. Stays in the family.

My only concern is that i will go ahead and ring for example phone company to set up new account. I will provide them with all info they require as obviously i have access to it. Will they be dealing with me without any issues?

I thought i get a letter drawn up by solicitor or notary that will authorize me to represent/act on behalf of the company, have it signed by directors/board and than present it if required. One universal letter.

So my question is, is that possible? Is that normal practice? Can i run the basic operation/office of the company without being employed?

Thanks for help

if you are setting up a new account over the phone how will the company be able to verify you are who you are - if you have the details they will set it up - they may not need your name.

a universal letter is of no use for a telephone conversation, to be fair for a telephone conversation all you need to do is call them up - ask them what they require and give the relevant details via post or call into a shop/office, the vast majority of businesses only care about getting your money, its more than likely you need one of the directors to set up the accounts and add you as a "representative")

if you have the time/expertise and wish to volunteer your services - then there is nothing stopping you - however, if you are in receipt of welfare you face being grilled/accused of working if found to be representing the company..... the company could always offer you an "internship" under the jobsbridge scheme (if you are unemployed).

infoinfoinfo

Sound, i thought it was like this.

I work on full time contract and will be basically helping out. Like a volunteer.

I suppose if any issue comes up when dealing on behalf of the company i will have director to ring in and confirm me as a representative.

I appreciate your help. Or could i be added to Articles/Memorandum as a representative?

Anyway your insights are great! I have no experience in this so i appreciate it a lot.

Corkbah

you are free to help out if you wish - but remember that if you are injured/hurt while doing this ...they company are not obliged to pay you anything.

in my opinion you might be better off to get the directors to talk to their accountant and seek advice on how to do this - in the infancy of a company its unlikely the accountant will provide a long term solution and will simply say ...work away, if it helps build towards profit ...what harm can it do.

potential pitfalls in my opinion:

- if you and GF have arguments or split up
- if you disagree with business decisions
- if you are hurt/injured you are not covered by insurance
- you do not receive any remuneration/payment/recognition for your work.
- other business partner may grow to dislike you or your opinions.
- companies/suppliers might see you as point of contact and directors get annoyed.
- company takes a lot of your social life.
- you have no voice on what decisions the company makes

infoinfoinfo

Yep, good advice.

I will give it a go. Should i come across some problems i will look for long term official way to do this.

Again, appreciated!

BusinessGuy

I have only briefly read through these posts but just wanted to give my two cents

There are copmanies out there with 2 directors and have over 100 staff. There will be an finance manager, a sales manager, a legal manager, an office manager etc.

All of these people will be able to act on behalf of the company and set up accounts with solicitors, telephone companies, marketing agencies etc.

Basically my point here is that it is definitely possible for someone who isn't a director to act on behalf of a company.

Another option would be that they make you a director of the company but don't give you any shares. So lets say there are 10 shares in the company, maybe your girlfiriend has all the shares of 1 euro each, and the other 2 directors then have 0 shares. This then has no affect on your income tax with your other job and you can be added to the company bank account. Hope this helps.