Options for Company

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Options for Company
« on: April 19, 2015, 04:29:12 AM »

I'm wondering if anyone has a suggestion for me...

Basically, I'm a consultant that is a director of an incorporated limited company in BC.  Unfortunately, due to a lot of different circumstances, I have a large CRA bill and outstanding GST that was paid to me and not remitted to the government.  My accountant filed everything in a way that made the company clean and transferred all to debt to me personally.

Currently, my company has a contract for which I'm the person doing the work.  I'm ok with giving up my directorship and the contract does require that I am the director of the company.

My question is this...

Can I resign as a director and setup a company/employee relationship with the company that I gave up directorship?  I plan to draw a salary which is market rate, but lower than my hourly contract rate.

Thank you for any advice anyone can give.



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Re: Options for Company
« Reply #1 on: April 19, 2015, 12:53:09 PM »
I don't have much experience with BC laws; I know that the BC Corporations Act has the usual text about having to resign if you become bankrupt. Remembering that free advice is worth what you pay for...

I'm assuming that you aren't bankrupt currently. I can't think of a BIA reason that you can't resign your directorship and become an employee. If you were to go bankrupt and if you either own shares in the company or transfer any shares, the trustee would need to investigate the value to the estate of either the shares or the transfer.

The CRA could make your life difficult by issuing a Requirement to Pay and/or other collection actions before you file for bankruptcy, if that's what you plan to do.


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