Supporting Guidance: employer compliance: guidance by subject: letter of offer: joint and several offers
Where a company
- does not have sufficient funds to make a lump sum offer and
- has little in the way of assets (that is, there is a genuine means problem COG914550)
- settlement by instalments is feasible
it is always preferable to obtain a ‘joint and several’ offer that includes the directors as signatories in their personal capacity.
This is an offer from the company and its directors which would be enforceable against the directors’ assets if the company did not pay.
By seeking a joint and several offer you are not asking the directors to fund or partly fund the settlement, but rather to demonstrate that they have faith in the company being able to meet its liabilities.
Essentially it is no different to the directors giving a personal guarantee to a bank for example.
Specimen letter of offer (lump sum payment (Word 35KB)).
Specimen letter of offer (instalments (Word 34KB))
to be used in such situations.
- See COG904770 or
- TALA Liverpool is available for advice if required.