Quick query. The scenario is:
A person was an owner, manager, director and secretary of a limited company which went into liquidation at the end of 2008 after oweing a lot of money to various creditors (and also to some of their employees!).
In early 2009, this same person set up another limited company providing the same services as the previous one. This person is again an owner, manager, director and secretary of the new company.
The creditors (including the Revenue as far as I know) have therefore all lost out and the individual is just picking up where they left off.
Are there automatic restrictions to prevent this sort of thing? I know that a person can't just close down a company, walk away from their debts and start up again under a new name. Does someone have to complain to the ODCE before a person is restricted from behaving as outlined above? Or is there an automatic restriction in place whereby a person can't act as a director again for a period of time when they were director of a company that went into liquidation?
Thanks for any input.
A person was an owner, manager, director and secretary of a limited company which went into liquidation at the end of 2008 after oweing a lot of money to various creditors (and also to some of their employees!).
In early 2009, this same person set up another limited company providing the same services as the previous one. This person is again an owner, manager, director and secretary of the new company.
The creditors (including the Revenue as far as I know) have therefore all lost out and the individual is just picking up where they left off.
Are there automatic restrictions to prevent this sort of thing? I know that a person can't just close down a company, walk away from their debts and start up again under a new name. Does someone have to complain to the ODCE before a person is restricted from behaving as outlined above? Or is there an automatic restriction in place whereby a person can't act as a director again for a period of time when they were director of a company that went into liquidation?
Thanks for any input.