Hi, for the last year i have been a Director of a well known high street store. This position is a Franchise type thing, meaning i hold shares. I didn't pay for the shares i sort of inherited them after working for a year to bring the store back into profit.
Now the company has asked me to provide them with a credit search, something i believed they had already done before they accepted me as a partner.
I am worried beyond belief and believe my IVA may destroy the best job and chance at a comfortable life i have ever had.
Can i be a director of a franchise with shares whilst in an IVA?
What about my privacy?, i dont want all and sundry knowing my business.
Well, as long as your IP is aware of these shares then it's certainly okay as far as the IVA is concerned, but your conditions of employment are at the discretion of your employer. You might benefit from an informal, non-committal chat with HR about your company policy.
You can be a director and shareholder whilst in an IVA.
How the parent company will view this is the question, have you checked the terms and conditions of your franchise ?
How long have you been in your IVA ?
The question can only be answered by reference to the franchise agreement I am afraid as Andy has already mentioned. Have a look through and take some legal advice if the position is unclear. A lot of franchise agreements do unfortunately become void in the event of a personal insolvency - but that does not mean the franchisor cannot override that if you are doing a good job for them which it sounds as if you are.
Let us know how you get on as your IP should have checked the terms of the franchise agreement at the time your proposals were being presented.
Last edited by MelanieGiles on Tue Sep 21, 2010 11:12 pm, edited 1 time in total.