As they say: QED

The central thrust behind ‘Enterprise Britain’ comes in two parts: nobody really cares about Britain’s four million citizens involved in running the UK’s smaller concerns and from Parliament downwards the system is pregnant with bullies.

I am a non-executive director of an IT company which is going through a period of restructuring. This involved careful cash management. Our executive team are working twenty four hours a day to involve all parties including our creditors.

I reproduce below a letter which has been received from one of the UK’s leading accountancy firms. They have now accepted it was sent in error.

You may not believe the contents. I assure you this is the letter that was sent.

“Private and Confidential

[ ] [home address ]

9 September 2009

Dear Mr. [ ],

Re: [ ] Outstanding debt £17,691.01

I am writing to confirm that we have been instructed to act on behalf of [Associated Company] with regard to the above outstanding debt.

As a director of a company, you are responsible for ensuring that accounts are filed within 10 months of the year-end showing a true and fair view of the company’s affairs at the balance sheet date.

It may be your intention to apply to the Registrar of Companies for the company to be struck off the Register under Section 652 of the Company’s Act 1985, however (sic), I must draw your attention to the fact that if there us an unpaid trading debt the company cannot be struck off unless it has been liquidated.

To summarise when a company ceases to trade the directors must ensure that the following matters are dealt with:

De-registration for VAT
De-registration of the PAYE Scheme
Payment of all outstanding creditors
Closure of all company bank accounts
Preparation and filing of final accounts

My clients are concerned to note that you have failed in your responsibilities by not paying my client’s outstanding debt and this does not in any was relinquish you from your responsibilities as a director of the company.

I hereby request payment of my client’s outstanding account or your proposals for payment, or alternatively, it will be our intention to oppose any application to have this company struck off and consider legal proceedings, which may involve issuing a petition for the compulsory winging up of your company.

Finally, on the making of the order, it would also be our intention to request the Official Receiver to investigate your conduct whether you are a fit and proper person to act as a director in this or any other business. This may result in proceedings being issued against you personally.

I trust this will not be necessary and look forward to hearing from you.

Yours sincerely

[ ]
Director of Insolvency”

This letter was sent to every director of the company.

The website of this firm, one of the UK’s leading firm of accountants, says it encourages enterprise.

As they say: QED

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