Business dissolved and restarted using same website..
Discussion
HI,
I know of a business lets call it Joe Soap solutions. They have a website www.joesoapsolutions.... (edited to remove .co.uk incase this is a real website)
The are wound up by a supplier last year.
Company restarts and JS Group.
Still using the old vans with old signage. Still using the old website. In other words they are trying to keep branding/image of the old name.
Is this normal/legal?
Cheers,
I know of a business lets call it Joe Soap solutions. They have a website www.joesoapsolutions.... (edited to remove .co.uk incase this is a real website)
The are wound up by a supplier last year.
Company restarts and JS Group.
Still using the old vans with old signage. Still using the old website. In other words they are trying to keep branding/image of the old name.
Is this normal/legal?
Cheers,
Edited by 528Sport on Monday 26th January 10:46
Edited by 528Sport on Monday 26th January 10:47
A phoenix company may not use any name by which the liquidating company was known in the last 12 months or a name which is so similar that it suggests an association with the liquidated company. The only exception is if there is an arrangement with the liquidator to acquire substantially the whole of the business of the insolvent company or the new company with the similar name has been known as such for 12 months prior to the creditors meeting of the liquidated company and has not been dormant.
Does it have the same director? If so that had better be on the permission of the court.
Does it have the same director? If so that had better be on the permission of the court.
A neighbour of mine has done this several times. He's no longer a director of the new building company he works for - he's the H&S Manager. His 81 year old Mother-in-Law is the MD. The new company has nothing whatsoever in anyway shape or form anything to do with the company that went bust owing over £2m
Basically, it seems you need to just change the logo on the website & get the old stickers peeled off the van & some new ones stuck on and you're good to go.
Basically, it seems you need to just change the logo on the website & get the old stickers peeled off the van & some new ones stuck on and you're good to go.
I see this all the time.
Company goes bust. They leave all their debt with the liquidator and buy all the assets back from the liquidator for a tiny amount and it's only money they have milked from the company before putting it into liquidation.
Its legal and even has a name - pre-pack liquidation or similar.
Disgusts me.
Company goes bust. They leave all their debt with the liquidator and buy all the assets back from the liquidator for a tiny amount and it's only money they have milked from the company before putting it into liquidation.
Its legal and even has a name - pre-pack liquidation or similar.
Disgusts me.
This happens because nobody other than the creditors gives a toss.
Insolvency practitioners don't care - as long as they get their fees. In fact, the more dodgy company owners they allow to phoenix and f
k creditors over, the more revenue they make - as those skilled in the art of ripping off their suppliers sometimes make a habit of it.
So, once the friendly insolvency practioner makes his £10k-£100k writing letters and counting things, who else is going to do anything? Companies house? Unlikely. Who is going to take civil action? Nobody.
It is a charter for the dodgy to take the piss - which is a shame as you do need a sensible system for dealing with genuine bankruptcies..
Insolvency practitioners don't care - as long as they get their fees. In fact, the more dodgy company owners they allow to phoenix and f
k creditors over, the more revenue they make - as those skilled in the art of ripping off their suppliers sometimes make a habit of it.So, once the friendly insolvency practioner makes his £10k-£100k writing letters and counting things, who else is going to do anything? Companies house? Unlikely. Who is going to take civil action? Nobody.
It is a charter for the dodgy to take the piss - which is a shame as you do need a sensible system for dealing with genuine bankruptcies..
blindswelledrat said:
I see this all the time.
Company goes bust. They leave all their debt with the liquidator and buy all the assets back from the liquidator for a tiny amount and it's only money they have milked from the company before putting it into liquidation.
Its legal and even has a name - pre-pack liquidation or similar.
Disgusts me.
jumping jelly beans - that is disgusting. Really wasn't expecting to see this coming on this thread. Company goes bust. They leave all their debt with the liquidator and buy all the assets back from the liquidator for a tiny amount and it's only money they have milked from the company before putting it into liquidation.
Its legal and even has a name - pre-pack liquidation or similar.
Disgusts me.
Bloody hell, something you would hear about on cowboy traders.
This pisses me off and I admit to not understanding it properly. I always thought I had heard of company directors being banned from owning a company for a certain amount of time etc but it seems they dont get penalised at all.
In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
jonamv8 said:
This pisses me off and I admit to not understanding it properly. I always thought I had heard of company directors being banned from owning a company for a certain amount of time etc but it seems they dont get penalised at all.
In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
That would fall under not doing the right thing for the company I believe.In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
'Accidentally' going under is not the same as purposely taking a loan out.
Du1point8 said:
jonamv8 said:
This pisses me off and I admit to not understanding it properly. I always thought I had heard of company directors being banned from owning a company for a certain amount of time etc but it seems they dont get penalised at all.
In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
That would fall under not doing the right thing for the company I believe.In what circumstances do they get penalised?
If they know they are going down the pan then get a bank loan, take it out of business and go bust what happens? Surely something like that is that obvious that some form of action needs to be taken?
'Accidentally' going under is not the same as purposely taking a loan out.
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