Dumaguete Info Search


Company director lives it up in Mexico while staff go unpaid

Discussion in 'Off-Topic Forum' started by Jack Peterson, Jan 2, 2015.

Best Posts in Thread
  1. Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

    Messages:
    9,113
    Trophy Points:
    451
    Occupation:
    Happily Retired
    Location:
    Northern Junob, Dumaguete City
    Ratings:
    +5,258 / 1,090
    • Like Like x 2
    Jack Peterson, Jan 2, 2015
    #1
  2. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

    Messages:
    13,106
    Trophy Points:
    451
    Occupation:
    FIRE
    Location:
    Valencia
    Ratings:
    +16,073 / 3,796
    Blood Type:
    O+
    But was he using company money or money from his personal account? Just because a person has a failed business doesn't mean that he hasn't been saving up his own money.
     
    Rye83, Jan 2, 2015
    #2
  3. OP
    OP
    Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

    Messages:
    9,113
    Trophy Points:
    451
    Occupation:
    Happily Retired
    Location:
    Northern Junob, Dumaguete City
    Ratings:
    +5,258 / 1,090

    Agreed to a point, but lets see if he Owes the Tax Man or has Unpaid Social Insurance Payments to make from Monies taken from employees.

    Closing Business for the day and Heading off on Hols to me is not a good way to Behave. As with most of these stories, there will be a lot more to it than meets the Eye. If the Company is Limited (LTD) he will of course Plead that limitation but if not, then the whole amount owed will be his personal Debt which will include any Salaries Owing.
     
    Jack Peterson, Jan 4, 2015
    #3
  4. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

    Messages:
    13,106
    Trophy Points:
    451
    Occupation:
    FIRE
    Location:
    Valencia
    Ratings:
    +16,073 / 3,796
    Blood Type:
    O+
    I don't think the person's personal finances should be considered in it. What he set aside for starting the business and any money made from that should be the only thing "up for grabs" in a legal proceeding.

    There are situations where I would change my opinion on that though. I don't like to play the "us vs. them" blame game when it comes to the rich and poor. A business can fail without the owner being a bad person. If this guy was financially competent and saved money then why not take a vacation after your business fails? It's stressful to run a business and if I did everything I could to keep the business afloat and went through all the stress you better believe I'd go on a tropical vacation when all was said and done. Though personally I would make sure the employees were paid for the work they did, even if it meant reaching into my own pockets.
     
    Rye83, Jan 4, 2015
    #4
  5. OP
    OP
    Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

    Messages:
    9,113
    Trophy Points:
    451
    Occupation:
    Happily Retired
    Location:
    Northern Junob, Dumaguete City
    Ratings:
    +5,258 / 1,090
    There My friend lies the difference of a Sole trader and a Limited Company, In UK law he will be Liable when he returns.

    I believe in the US it is called chapter 11? in UK it is Notification of bankruptcy, it would appear he has not done this, So as a Brit I can only think he has done a runner and fiddled the books to his own accounts.

    My wife a CPA is following this and Updating me on international repercussions.

    JP
     
    Jack Peterson, Jan 4, 2015
    #5
  6. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

    Messages:
    13,106
    Trophy Points:
    451
    Occupation:
    FIRE
    Location:
    Valencia
    Ratings:
    +16,073 / 3,796
    Blood Type:
    O+
    Chapter 11 is bankruptcy. If you start a business it should be an LLC (limited liability company), which limits the amount you would be personally liable for. I don't know who in their right mind would start a sole proprietorship with the way the world likes to bring up lawsuits these days. Hopefully the guy in question here was smart enough to protect his own interests.
     
    • Agree Agree x 1
    Rye83, Jan 4, 2015
    #6
  7. john boy

    john boy DI Forum Luminary Highly Rated Poster

    Messages:
    2,881
    Trophy Points:
    376
    Occupation:
    Retired
    Location:
    Wirral near Liverpool UK
    Ratings:
    +1,345 / 247
    Guess it's a case of which side of the fence your on, or if you have a conscience or not.
    Personally I could not go off on a holiday knowing my employees had no money at any time of year through the failure of my business. However he clearly states he was not on holiday, which would be easy to prove otherwise.
    Sad situation all round, but happening quite often these days.
    F..k you mate I'm alright attitude comes to mind.....JB
     
    • Agree Agree x 1
    john boy, Jan 5, 2015
    #7
Loading...