Hi mwmackenzie and welcome to the trust deed forum.

There is nothing whatsoever to stop you becoming self-employed during the course of a trust deed. In fact many self-employed people are in trust deeds as they tend to be a little more financially exposed to upturns and downturns in the economy compared to employed persons.

You can serve as a Director (I appreciate that there is a lot of conflicting/wrong advice on this particular subject available on the internet).

Taking shares might be an issue. If they have much value they could potentially be considered to be "acquirenda" and result in an additional liability to pay more money into the trust deed later.

Hi mwmackenzie

You can be self employed and a director of a limited company whilst in a Trust Deed.

Like TDA states if you are gifted shares and there is any value to them, the value could potentially require to be ingathered for the benefit of your creditors.

Julie

Thanks so much Trust Deed Assistant, that's great news! 🙂 At pressent the company has no assets and is struggling but easily turned around once I get my claws into it... As such the shares themselves are of no real monitary value at the current state of play. At the moment I'm unemployed and don't believe I'll be able to make a wage for a wee while until the company starts to trade effectively so will need to rely on family to meet my trust deed payments until such time as I can take them over myself.

Many thanks

🙂

A word of warning however mwmackenzie. Your being a director could affect the ability of the company to get credit - I believe that credit checks on directors are commonplace in such applications (as directors are often asked to sign personal guarantees).

quote:

---

but I have read that I can not be a director of a limited company while in a trust deed, is this the case, meaning I cant take on any shares even if gifted them?

---

..remember a director doesn't need to own any shares. A shareholder owns part (or all) of the company. A director is an employee who runs it and who may or may not own shares in it.

Cheers,

DebtFreeWannabee

quote:

---

I believe that credit checks on directors are commonplace in such applications (as directors are often asked to sign personal guarantees).

---

That's a good heads up Kevin. And even if they don't need to sign a guarantee, credit checks are usually run on the directors when an application for credit is made.

Hi mwmackenzie.

There could be an issue if the shares were to develop value during the course of your trust deed even if they have little value today. Probably best to be a little careful in this area.

Thanks guys, credit is not something the company has or needs to run so that's not a worry but the shares thing may be a concern... I'll need to give this some thought

Thanks