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Scottish Trust Deed Forum
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Topic starter
16/06/2015 9:55 am
Hi
I am currently half way through my PTD. At the start of my TD I was in the process of setting up a new limited company with another person. He put himself as a Director, I am registered as a shareholder, and there are only 2 of us.
The company has been doing well and I have informed my trustee of my dividends.
The company has no assets and if I don't work, there is no dividend.
My questions is this, can I become a director of a LTD company in a TD?
If I am a director, could the company become an 'asset' to my creditors?
Thanks
16/06/2015 11:09 am
Hi portway.
A trust deed doesn't prevent you from being a director of a company. Only the rules of the company might do that (something you should be able to check easily enough).
An "asset" is connected to ownership rather than taking on the legal responsibility of being a company director. You're already a shareholder (the shares are the asset potentially) so becoming a director should make no difference.
One thing to consider is whether becoming a director while remaining in a protected trust deed would have any implications for the company's banking arrangements.
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Topic starter
16/06/2015 12:29 pm
Ah. Thanks. I hadn't thought of the bank side of things. I have no access to any of the banking and nor was I included in the application so as far as the bank are concerned I don't exist, but I think you are right in pointing that out and I will check into that.
Thanks
17/06/2015 12:19 am
Hi portway.
Business banking seems to be the biggest headache for company directors in protected trust deeds.
It's come up here occasionally for some years now.
If that issue is covered, directorships and trust deeds generally seem to be compatible.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
