Can sheriff seize shares?

[elpresidente]

So I own money to one company. I wasnt able to pay and I do not shrink from responsibility. Might take few months to pay all bills instead of few days as they require but thats ok


My questions is this: I run an LTD company, I'm its director and single shareholder. In case if the company I owe money to gets a court order and hires sheriff to seize my goods (its my personal debt, not companys!) can sheriff seize shares of my company from me? Are they allowed to do that?

 

[Jim Stafford]

The sheriff cannot seize your shares. However, your judgment creditor could apply to court to appoint a "Receiver by way of equitable execution" over your shares. The creditor would have to satisfy the court that it has exhausted all other means of obtaining payment (e.g. using the sheriff, instalment order etc) before seeking such "equitable relief".

Generally speaking, creditors would not seek to appoint equitable receivers, as the process is expensive and most companies do not have great value. One of the many issues facing equitable receivers is the issue of shadow directorship etc.

Jim Stafford