I am a director of two companies,company 1 has gone into a cva, owing a substantial amount of money for materials to myself and my wife ( not a director ) my son again not a director . Company 2 is my main form of work and is owed money for work carried out,and also the supply of materials, which may force this company into a cva. Can we be classed as creditors on the first company. I have been told I cant because I am an associated director, but there must be a way of either my wife or son to be classed as creditors. We have invested this money into both companies, to keep people in work, but it just seems to have back fired. Any ideas
Thanks
I have absolutely no idea on this at all - hopefully one of the professionals will be along later with some advice.
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Hi Mlal - I have highlighted your post to Melanie who will be able to address this with her joint corporate and personal insolvency knowledge. There may be other experts too in the meantime that will have their own answers.
Last edited by Tina Shortland on Thu May 03, 2012 1:55 pm, edited 1 time in total.
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You are a creditor albeit an associate one but this does not debar you from receiving a dividend. Creditors can ask for you to remain outside but you do not have to agree and ultimately could fail the CVA and force liquidation. Get a second opinion if you are not happy.
I wonderd why you have been told you cannot recieve dividend and ting went in my head! Is there some subcontact work between company 1 & 2 or vice versa? And don't shoot me here if your looking at a second CVA might want to review the business model a little!
whilst i would have thought as a legitimate creditor there would be nothing to stop you claiming a divident from monies received I cannot see the other creditors looking on it to well..
