Company directors legal responsibility for debt.

[Will C]

Look up “winding up petition” if it’s a significant amount.

from my (limited & Luddite) knowledge if you ask the court for one the company has all assets and bank accounts frozen until a receiver pays the debt and gives them any remaining assets back. I can’t remember the minimum figure but it used to be a powerful tool against a ltd company. 

[steve@black]

The company in question here have now gone into voluntary liquidation . It seems to me things are set up to help people in debt and of course wriggle out of it than those poor folks who have grafted for the money . 

[Mike Hill]

34 minutes ago, steve@black said:

The company in question here have now gone into voluntary liquidation . It seems to me things are set up to help people in debt and of course wriggle out of it than those poor folks who have grafted for the money . 

Take possession of goods to the value of the debt. 

 

I have done this twice and it worked out. Cops wernt interested because it is a civil matter. Just don't hide the kit somewhere they can find it and don't use it until they pay up.

[Puffingbilly413]

12 minutes ago, Mike Hill said:

Take possession of goods to the value of the debt. 

 

I have done this twice and it worked out. Cops wernt interested because it is a civil matter. Just don't hide the kit somewhere they can find it and don't use it until they pay up.

If they're in liquidation then that won't work.  Liquidators will take legal control of the assets and wind the company up, paying off creditors accordingly.  First in the queue is HMRC, then the liquidators' fee, then the rest.  Be lucky to get back what's owed unfortunately IME.

By way of an edit - it does depend what type of liquidation and whay stage they're at.  Some useful info on the HMRC site.

Edited November 1, 2023 by Puffingbilly413

[steve@black]

The company directors involved are now both working for a company owned by their wives and all absolutely legal .  

[Squaredy]

1 hour ago, steve@black said:

The company directors involved are now both working for a company owned by their wives and all absolutely legal .  

There are indeed several situations where company directors can be held personally liable for their defunct companies debt.  These include where they have sold or given away assets for less than their real value, or using company assets for non company activities.  Do you know what has happened to the company assets?  Have they conveniently given them to themselves or their new company?

 

Of course you need professional legal advice.  And no doubt it will not be simple and maybe the problem will be proving anything.  It could involve starting a costly legal battle with no guarantee of success.

[openspaceman]

1 hour ago, Squaredy said:

It could involve starting a costly legal battle with no guarantee of success.

Which is why most creditors give up and the debtors just start again.

[dan blocker]

Bar stewards need stringing up😫

[steve@black]

The annoying thing I questioned their ability to pay when the spec on the job changed I had promises it was all good , my advise when working for a recently formed company get a written directors guarantee. It will be interesting to see what the debts are as they were only trading a few years ,my accountant has said 60 k to hmrc which must mean they made alot surely .