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Family funds

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02 August 2011
Issue: 4315 / Categories: Forum & Feedback
The bankrupt brother of a sister and brother who between them own the shares in a UK trading company has an outstanding loan to the company. There is no possibility that the loan will be repaid and it is to be written off

Our client Mrs Daughter is the full-time director company secretary and holder of one of two issued shares of a close family company which she administers.

Son 2 is a full-time working director and holds the other issued share. Their parents Mum and Dad are working employees of the company but neither has ever held any shares or been a director.

Son 1 of the same family was a director when the company was incorporated but resigned about five years ago when his position became untenable under certain trade qualifications.

He continues as a working employee and has never been a shareholder.

Son 1 has a substantial loan due to the company the advances being unrelated to the company’s business but mainly to pay his liabilities due to HMRC...

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