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Scottish Trust Deed Forum
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Topic starter
06/08/2010 1:06 pm
Hi there
I am 12 months into my protected Trust Deed, working in a low level, low paying job.
I have a hobby that someone (an "Angel - or Dragon if you will) would like to invest in.
How does this affect me?. Would I need to establish the business in a certain way to protect their investment? eg limited vs sole trader?
I will be able to take a healthier salary and may even be able to pay off the outstanding debts in full so everyone wins all round?
So i'm sure this is too good to be true...what is the difficulties here?
Many thanks
06/08/2010 1:17 pm
Hello queen_sheba and welcome to the forum.
I would have thought that setting up your business as a limited company would be the best route forwards here. That way it is a separate legal entity to you.
I'm sure the others will have some thoughts on this soon...
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Topic starter
06/08/2010 1:20 pm
thanks - I take it in my "articles of association" I can write myself a get out clause? All of the google information is referring to if you are already in business rather than getting one started.
sarah
06/08/2010 5:03 pm
I don't believe there is anything to stop you becoming director of a ltd co whilst in a trust deed - it is only in sequestrations where there would be a problem. As I understand it, part of the Companies Act does state that if a director enters into a formal insolvency arrangement they should resign their directorship. However, there is nothing to say that a new directorship cannot be taken up whilst in a trust deed.
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