Good evening all,

Thank you for taking the time to read this!

The company which I’m the only manager of has been told by two majority shareholders that our MD who was a minority shareholder and only director has just quit without serving his notice and he was the only bank signatory.

The company is in trouble and people from all corners are chasing payments and we are on the brink of being shut down.

The main issue I’m asking about is the employee rights etc.

There is money in the bank to pay the months salaries but the resigned director is refusing to make payments and he is the only one who can,

also we have all been working for two weeks now without knowing what’s going on.

No one has told us to stop but he has said he will only talk when legally advised to by his lawyer.

he’s not paid last months and we are all wondering what to do or who to talk to?

Should we carry on or leave?

The other shareholders have no dealings in the business and are none the wiser either.

Regards Luke

Hi

Welcome to CAG

I can understand your concern, are you going to get paid, is you job safe etc.

Do you have an HR Dept and have you raised the issue of non-payment of wages?

How long have you been employed by the company?

Are you in a Union? (if so get them involved)

I assume you have asked your employer so also raise a grievence (as per company policy) of non-payment of wages.

Couple of links for you:

ACAS - Pay deductions

http://www.acas.org.uk/index.aspx?articleid=4125

Companies House - (Check the Companies Name here)

https://beta.companieshouse.gov.uk/

London Gazettee - (Check the Companies Name for any notices i.e. involuntary liquidation etc)

https://www.thegazette.co.uk/

The shareholders need to appoint a new director of the company. Even if that person is just temporary. That is very easy to do - they just need to pass an ordinary shareholders resolution, and file form AP01 with Companies House.

The new director should then be able to contact the bank and, hopefully, get the signatories on the accounts changed.

If the business becomes insolvent, that may unfortunately mean you don't get paid (although you may be able to claim payments from the national insurance fund eventually this will take time).

Personally, I would start looking for another job. But I might carry on working for a little bit while I search, in the hope of getting paid (if not now then from the national insurance fund).

If you have at least 2 years' service you have the option of resigning for non-payment of wages and claiming for unfair dismissal. But in reality a claim for unfair dismissal claim is not worth much if the company doesn't have any money.

there will be a company secretary, even if this is a nominee post so have a look on the companieshouse beta companies listing to see who it is, they are usually listed

Definitely worth a look but not every company has a company secretary, it is optional

without one it makes it impossible for a sole director to resign.

Being the only bank signatory is a slightly different matter and the current shareholders should have a special meeting to pass a resolution to make someone else the signatory and pass the minutes and resolution on to the bank. The bank may well try and get the resigned director's input on this anyway thus causieng more delay.