Taking legal action against a Ltd company?
Discussion
Not sure if this should be in the general, legal or business forum...
Can anyone explain how legal action can be taken against a Ltd company?
Say the Govt takes them to ocurt for a criminal punishment - I presume the Directors would be the ones to go to jail and any fine would come from the company accounts? i.e if the company was bankrupts then no fine coudl be paid?
What if a person wnats to sue them in civil court. I presume any damages would have to be paid from the company account, so again no point suing them if they have no money ?
Anyone know a good website that could explain it all?
Can anyone explain how legal action can be taken against a Ltd company?
Say the Govt takes them to ocurt for a criminal punishment - I presume the Directors would be the ones to go to jail and any fine would come from the company accounts? i.e if the company was bankrupts then no fine coudl be paid?
What if a person wnats to sue them in civil court. I presume any damages would have to be paid from the company account, so again no point suing them if they have no money ?
Anyone know a good website that could explain it all?
A limited company is a legal person in its own right. Therefore taking an action against a company is much the same as taking an action against an individual.
If a person wants to sue a director personally, that is MUCH, MUCH more difficult. The problem is attaching trhe alleged wrongdoing of the company to any one director. For instance, if an employee behaves in a reckless and negligent manner, it is very hard to transfer that irresponsibility onto the shoulders of the managers of the company.
The failure of the courts to prosecute the directors of the copmpany which owned The Bowbelle Thames barge (which ran into The Marchiness pleasure boat) is a clear example of how difficult it is.
This thread will probably end up being transfered to the Business forum (although it is on a "legal" matter).
If a person wants to sue a director personally, that is MUCH, MUCH more difficult. The problem is attaching trhe alleged wrongdoing of the company to any one director. For instance, if an employee behaves in a reckless and negligent manner, it is very hard to transfer that irresponsibility onto the shoulders of the managers of the company.
The failure of the courts to prosecute the directors of the copmpany which owned The Bowbelle Thames barge (which ran into The Marchiness pleasure boat) is a clear example of how difficult it is.
This thread will probably end up being transfered to the Business forum (although it is on a "legal" matter).
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