Resigning as Director of an IBC

[hello123]

Hey guys.

I have an IBC of which there are two directors. We both own the company 50/50.

I no longer want the company and I want to dissolve it but the problem is that the other director can't be reached and we can't have his signature. I am told that I cannot resign as director without his signature.

If the other director is unreachable/unwilling and I don't want the burden of having this IBC anymore then what are my options? Would anybody know?

Thanks!

 

[DBeker]

this is a tricky one. Maybe set up a US LLC in New Mexico or something, with a fake name, as they don't ever check for ID or anything. Then have that LLC buy out your IBC shares. Then detach yourself completely from the LLC like it never existed under your watch!

 

[Sols]

You do not need consent from the other director before resigning. However, if you resign knowing that the company will no longer be able to fulfil its duties, you can end up being declared an unfit director. In the case of an IBC and if we assume the company is active and has no debts, that risk is usually zero or doesn't matter.

@DBeker's idea is interesting and would probably work. It might trigger a taxable event, though.

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This is the probably the answer to your question.

 

[fshore]

You should be able to resign without the other directors permission.

Sols said:
you can end up being declared an unfit director
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Do you mean you can be declared an unfit director after you've resigned as a director? What does that mean?

 

[Sols]

fshore said:
Do you mean you can be declared an unfit director after you've resigned as a director? What does that mean?
Click to expand...

A director's duties are to keep the company in good standing. If a director resigns knowing that doing so will cause the company to not meet its obligation, the director's liabilities may in some cases continue after resignation.

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This is the probably the answer to your question.