More Debt Recovery Problems
Discussion
What are my chances of recovering £8k I won in court from a Ltd company that has brought in the administrators. Bit of background, the only officer of the company (doesn't have a Co Sec or any other directors) has just been released from a 6 month sentence for fraud and perverting the course of justice but before he got sent down he knew what was coming, set up a new Ltd company and attempted to close the old one.
Any thoughts?
Any thoughts?
If the company is in "administration", then it is still in business except that it is being run by the administrators(s) rather than the original director(s). The company amy therefore be in a position to settle its debts.
If the company is in "liquidation", then the chances of receiving the amounts you are owed are probably quite slim.
Limited companies are required by law to have a Company Secretary.
If the company is in "liquidation", then the chances of receiving the amounts you are owed are probably quite slim.
Limited companies are required by law to have a Company Secretary.
In extreme cases it is possible to pursue a Director of a defunct company. However, the circumstances in which a Court will "Lift the Veil of Incorporation" are very limited. Essentially, it will have to be proved that the director traded either "recklessly", "wrongfully" or "fraudulently". It is amazingingly difficult to prove any of these.
eric mc said:
In extreme cases it is possible to pursue a Director of a defunct company. However, the circumstances in which a Court will "Lift the Veil of Incorporation" are very limited. Essentially, it will have to be proved that the director traded either "recklessly", "wrongfully" or "fraudulently". It is amazingingly difficult to prove any of these.
Another case of the law being stacked against the innocent tax paying majority. I had a 'customer' go into receivership so I went in to collect my goods -printed their Invoices and Delivery notes so they would be screwed without them. I had to prove retention of ownership before I was allowed to take them back even though they hadnt paid a penny for them. Its a fecked up world - needless to say no money has been paid to myself.
There is sense in reluctance to allow directors to be pursued. Many businesses fail every year - mainly due to combinations of poor decision making, changed external economic circumstances or just bad luck. Deliberate misfeasement of funds or reckless activity by the directors is actually quite rare. Even if there is a hint that a director traded in a way that might be seen as reckless or wrongful, given the fact that the company may have been on the verge of collapse, he might very well claim that he was trying to trade his way out of the situation - and he may even be telling the truth. That's why it's so hard to get a wrongful or fraudulent trading judgement against a director.
Unfortunatly that's what I figured, its easy to come into contact with these wnakers, well at least he had to spend 6 months inside for other fraudulent activity. I hope his ring piece is now severely stretched.
Its quite funny really, this is a forum that is bang against the unfair treatment of motorists and it was a motoring offence that finally did for this git. Justice was done on this occasion.
Its quite funny really, this is a forum that is bang against the unfair treatment of motorists and it was a motoring offence that finally did for this git. Justice was done on this occasion.
Whilst I have genuine sympathy for the directors etc oif companies which fail through no mismanagment on their part, there are still many people who start a business, build up debts, fold the company and then start up again and do exactly the same thing and have a pretty good lifestyle whilst doing this.
For those people I have no symapthy whatsoever and these leaches feed off the suppliers who are then left with a debt with little or no chance of recovery.
ore should be done to protect companies from these type people.
For those people I have no symapthy whatsoever and these leaches feed off the suppliers who are then left with a debt with little or no chance of recovery.
ore should be done to protect companies from these type people.
The problem is gathering enough evidence to PROVE that directors are behaving like this. If someone is really behaving in a blatantly "rogueish" way, they will be found out. However, the main punishment under current law is to be banned from being a director - which for these characters, is a pretty weak deterrent.
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