Hi
If I am director of two ltd companies and both bank at the same bank and one company gets in financial difficulty and goes overdrawn etc is it perfectly safe for the other company to continue banking as normal?
can they take money from one to pay the other etc?
or should the second company change banks to be on the safe side?
In message , snipped-for-privacy@home.com writes
Yes, but see below.
No.
The danger is if the second company has, or wants in the future to have, any borrowing. The banks opinion of the common directors may be damaged if one company goes bust, especially if it owes money to the bank, and therefore the bank my be reluctant to offer facilities to the second company.
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