Business

Charge on Property

My ex partner in a limited company put us into voluntry liquidation. We had 250k of stock, which he removed prior to the final evaluation. He arranged the liquidator, so this was never bought up. He is now suing me for a third of the company overdraft which could have been paid if we sold the stock. ( which he used to set up another company ). I told him i wont pay so he says he is going to put a charge on my propoerty. What should i do?

RupertSmith Sat 17/05/08 19:42

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EverClean
Mon 19/05/08
11:32

Seek legal advice. Quickly.

Harley
Mon 07/07/08
23:08

Proceeds from the sale of the stock go to the liquidator to distribute amongst the general body of creditors including the bank.The bank would not have been entitled to take 100% of the proceeds from the sale of stock in any event.

It sounds like your partner had to pay off the bank under a guarantee and if you were a joint guarantor he is suing you for your share of the shortfall to the bank that he had to pay

If he took the stock as you say then you should notify the liquidator and let them take action. It won't improve the Bank situation. As a shareholder you must have been aware that the business was going into liquidation as it's put to a vote,why didn't you mention it at the time?

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