Your top MOSFET is a p-channel type. The source pin goes to your +40VDC supply. Gate voltages are measured from gate to source. If the gate voltage is measured from ground, it will be 40VDC to turn the MOSFET 'off', 35VDC to turn the MOSFET 'on'. Absolute maximum Vgs (gate to source voltage) is usually +/-20V and your circuit places 35V to 40V on the gate.

The consequence will be:

1) The p-channel MOSFET will never turn 'off'.
2) The gate to source oxide will rupture because there is 40VDC gate to source.
3) The destroyed MOSFET gate will short to source, apply 40VDC to your 74HC and logic circuit.

Mariss