DIRECTOR'S PAYMENTS

I really don't know the answer to this question that I was asked today.

Is it lawful for directors to take payments from a company whilst the said company is not and apparently not able to pay it's creditors?

I am not talking just about salaries but even loans and other agreements. I understand that they too would be creditors but should non director creditors be paid first and I am talking about the directors companies not just themselves personnally.

Come on Keith !!

Come on Keith !!

Alright then , if you insist

It is perfectly legal for them to continue to take salaries and loan repayments they are contractually entitled to. Whether they should morally when everyone else is being asked to make financial sacrifices is a different question.

The only point at which such transactions might be questionned is if the club went bust (i.e. the club is subject to a formal insolvency appointment) and they might be looked at as potential preferences in legal terms . I am sure that all fans , like me , hope that this is never tested because none of us want to see a formal insolvency happening.

Keith

Cheers Keith

keith, we would be completly cufuffled without you

Keith,

I wish i had my uses lol

No comment please Baz

a director is an employee and thus is entitled to remuneration as per their contract of employment, plus any other directors fees and expenses they may ordinarily be entitled to.

during insolvency, employees, including directors, have preference over all other creditors in terms of distribution, unless of course the director has acted ultra vires (literally beyond their powers) and acted in a manner not fitting of the office they hold.

a director is an employee and thus is entitled to remuneration as per their contract of employment, plus any other directors fees and expenses they may ordinarily be entitled to.

during insolvency, employees, including directors, have preference over all other creditors in terms of distribution, unless of course the director has acted ultra vires (literally beyond their powers) and acted in a manner not fitting of the office they hold.

Is it law that a director must be on minimum wage at least?

Alright then , if you insist

It is perfectly legal for them to continue to take salaries and loan repayments they are contractually entitled to. Whether they should morally when everyone else is being asked to make financial sacrifices is a different question.


Next question is do CCFC have any "morals"

I really don't know the answer to this question that I was asked today.

Is it lawful for directors to take payments from a company whilst the said company is not and apparently not able to pay it's creditors?

I am not talking just about salaries but even loans and other agreements. I understand that they too would be creditors but should non director creditors be paid first and I am talking about the directors companies not just themselves personnally.

Now we have had the answer to that one, I would like to know can a company's board of directors mislead its shareholders into voting to sell land to a major shareholder on the premise that the money would be used to settle a tax debt, when in fact it was never used for that and instead was used to settle a personal debt between the shareholder and the company?

I think what I am talking about is deception, but would it stand up?