Quizzes & Puzzles2 mins ago
Bankruptcy and marriage
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If a man is made bankrupt, what advantages would there be to starting/running a company in his wife's name?
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For more on marking an answer as the "Best Answer", please visit our FAQ.A bankrupt is not allowed to be a company director, and so if the bankrupt ran a business it may be convenient for their spouse to run the business for them. The bankrupt would find it difficult to operate a bank account and difficult to obtain credit.
Be warned that someone who controls the activities of the company is considered to be a director even if they are not formally appointed as a director (they are called a shadow director), so the bankrupt would haveto take no part in the decision making process that guides the company.
Be warned that someone who controls the activities of the company is considered to be a director even if they are not formally appointed as a director (they are called a shadow director), so the bankrupt would haveto take no part in the decision making process that guides the company.
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