Hi,
My wife has a small business (service industry) , she set it up about twenty years ago when she was made redundant from her employment. The business is my wife’s only source of income (which is very modest) , I work full time in other employment & I do not take a salary from the business. She started out as a sole trader & converted to a limited company in 2012, my wife & I being the only two directors. Due to Covid, her business is struggling, she has taken no salary from the business since Feb 2020 & as we are both in our early 60’s, she has decided it's time to wind down the business. As things currently stand, when all the business debts are paid, there should be a small cash surplus remaining within the business when all is done of about €15,000 approx. – my question is, can the business make a termination payment / ex gratia redundancy payment to her using the residual cash in the business ? Thanks.
J.P.
My wife has a small business (service industry) , she set it up about twenty years ago when she was made redundant from her employment. The business is my wife’s only source of income (which is very modest) , I work full time in other employment & I do not take a salary from the business. She started out as a sole trader & converted to a limited company in 2012, my wife & I being the only two directors. Due to Covid, her business is struggling, she has taken no salary from the business since Feb 2020 & as we are both in our early 60’s, she has decided it's time to wind down the business. As things currently stand, when all the business debts are paid, there should be a small cash surplus remaining within the business when all is done of about €15,000 approx. – my question is, can the business make a termination payment / ex gratia redundancy payment to her using the residual cash in the business ? Thanks.
J.P.