[prk]

Hi

A few months ago my co sec parted company with the Company. It was just me and him, and he had a 10% share of the company. I was employed by the company and he had a job elsewhere and just was responsible for statutory returns etc.

On leaving, I paid him the 10% share value, but he has so far insisted on keeping hold of a number of company assets, with total value about £2K.

What are the legal requirements here? I assume the assets are owned by the company, period.

Does anyone have any experience in recovering assets through the courts?

Thanks

PRK

[IP2]

Hi PRK and Welcome to A1

From your post, it is not clear what he has held onto, but yes if they are assets of the company they are not his to keep and at worst could be pursued as theft.

Even assuming a court decided it was not theft, if they were paid for by the company, he would be liable for the tax of benefits received in kind.

Can't offer you too much advice without knowing more detail though, but if you can prove the assets belong to the company, you should have a reasonable case.

[prk]

Hi IP2

Basically the items are the things that the Company purchased to set up his home environment and to do his 'work' as company secretary - computer base unit, monitor and 2nd, broadband modem, shredder, printer - that sort of thing.

Don't get me wrong, it's not the *value* of the items I'm bothered about, it is completely the legality of the issue. I gave him a full 10% payoff and he asked me not to rip him off and stated he wanted everything done 'by the book' but then he tries to keep hold of the items and will not agree with the book prices I have given him, calculated at 30% depreciation.

Thet's largely irrelevant as the items remain the property of the Company....

PRK

[IP2]

Did you discus these items during your negotiations to buy him out?

From what you have said, it sounds pretty clear, if you haven't already, I advise you write to him with a deadline date to purchase them off the company or to return them to the company, before 'beginning further action'.

[Peter W]

A common difficulty with small companies is that the distinction between the company and its owners is often blurred. For example, invoices are made out to the person who placed the order rather than the company, and payments are made using private credit cards. You ought to establish exactly what the situation is before deciding what to do.

[prk]

Originally Posted by IP2

Did you discus these items during your negotiations to buy him out?

Yes, he was told what the options were, and at his request we played it down the line.

When I turned up at his house to collect the goods he stated that he wanted to buy one item, so I agreed to give him teh current book price.

I worked this out and emailed it to him to which he replied that at that price he could buy himself a new one (basically he wanted the usual something for nothing). Since then he has not moved one inch.

[prk]

Originally Posted by Peter W

For example, invoices are made out to the person who placed the order rather than the company, and payments are made using private credit cards.

The goods in question were all purchased using private rather than company credit cards and claimed as expenses, therefore surely they remain the property of the Company.

They have been on the asset register that I maintain from purchase time.