Many web sites 'state' that an IVA is a 'private' concern and will not effect your ability to be a Company Director. I have an IVA and I am a Director & Shareholder in a Limited Company, my other Directors want me to resign as they say an IVA means I am disqualified from being a Company Director because of clause 88 in the 1948 Companies Act (which is incorporated in to the Company Articles of Association). This clause lists one of the reasons I should resign as a Company Director is disqualified if he makes an arrangement with his Creditors. Is my 'goose' cooked? They want me to sign a letter of resignation which also states that I will "irrevocably" give up any rights to redundancy pay, pension, etc... this seems to contradict the 'pros' that the IVA web sites list in that an IVA does not effect your job/Directorships/career/ standing for Public Office etc...My Company contacted their solicitor and he says an IVA prohibits me from being a director for my Company.....is my Company the only one to have adopted the 1948 Act (they were incorporated in 1898)
As far as I'm aware an IVA will not affect professions such as being in The Police or Armned Services, or impact on your ability to hold public office or act as a company director.
However I believe it's illegal to hold this position while bankrupt. Perhaps your other Directors are confused over this?
They will be refering to this:
104 (b) he becomes bankrupt or makes any composition with his creditors generally.
I don't think an IVA applies here?
Last edited by johnt on Fri Mar 20, 2009 1:31 pm, edited 1 time in total.
Your fellow directors can force your resignation, if the Articles of the company provide for this, however this rarely happens as most company directors actually get on with each other and would want to support a fellow board member in difficulty.
It seems that your fellow directors are using this as an excuse to force your resignation, but they should not be asking you to waive your right to statutory termination money under your contract of employment, and I would seek the advice of an employment lawyer on this point as this could give rise to an unfair dismissal claim.
You need the services of a competant lawyer. Whilst you are currently a director you are also an employee. They might be able to remove you as a director (because of the company's articles) they cannot remove you so easily as an employee.
Possible constructive dismissal - but you need to see an employment lawyer on this.
Last edited by David Mond on Sat Mar 21, 2009 7:06 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
JohnT/Melanie ? Where do I get more info re this and BR. I am about to go BR and am a quasi civil servant. Probably a similar standing as a police officer. I do not work with money but neither do most police and army personel. I have searched all our policies , procedures and my contract.I can find no mention of BR and conflict of interests anywhere. I do not feel I can approach HR as yet.
If there is nothing in your contract of employment or staff handbook, then I would suggest that your employment would not be affected, however this may only be able to be confirmed by checking with HR. Could you try and anonymous enquiry first of all?
Thanks Melanie and I think I will have to try an anonymous callto HR Nothing in Contract or policies and I have particulary read a Conflict of Interests policy. I am sure that I have now read them them all. A union colleague is trying to find out for me but has not got back to me. She remembered working with someone ( BR) many yrs ago when it was more of a stigma and it had not affected his job.
Talk about board room upheaveals.If you only had boardroom members like Sir Fred Goodwin, their members bent over backwards and he could do no wrong in their eyes.That's a beachhead not to be repeated.
Isn't there a Chairman's view in your company on your IVA and your standing in the company in all of this and besides if the board want you out then you they should reward you handsomely with a good reference for futher employment.
Whatever the Company Acts says it needs to be enforced and is aways discretionary.(AKA RBS as a casing point). It is the rule of man as much rule of law thats played out. This matter can be resolved in Goodwill and not just reverting to legislation. As an analogy, just think, there are other people who have got to senority in their job and then revealled they had lied in their CV...think of the last winner in Apprentice...Sir Alan stilll want him.
If I was in your predicament, I would threaten to sue the Board members if they didn't back you unless there was a performance issue!!I see boardroom poltics here at its dirtiest.
Last edited by newdeal on Sat Mar 21, 2009 12:23 pm, edited 1 time in total.
