Can a company stay dormant if shareholder, who is also director of the company resigns from director post?
Company's annual accounts to the Companies House for 2 years are overdue due to the lack of funds to pay for an accountant. Shareholder, who is also a director of the company want to file a resignation letter to the Companies House with the date before annual accounts were supposed to be submitted. 1. Can this person still remain a shareholder of the company? 2. Will he be responsible for not filing an annual account on time? 3. Can this company still stay dormant without director?
Other - Business & Finance - 1 Answers
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Answer 1 :
1. Can this person still remain a shareholder of the company? Yes, a shareholder has no responsibility for filing accounts. 2. Will he be responsible for not filing an annual account on time? He's not responsible as a shareholder but as long as he stays a director, he's responsible as a director. Whether or not he can resign as a director depends on the company's M&A. If this company has only a single director he definitely cannot resign cos that will leave the company without any directors. 3. Can this company still stay dormant without director? A company cannot exist without any directors. But if it had the requisite no. of directors, then yes, it can stay dormant.
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