Company in liquidation now find out that Director's wife set up same company?

A

alex24

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Hi,

Looking for advice.

I am creditor of company recently gone into liquidation. I have since found out that 9 months before liquidation, a new company was set up by director's wife. They are now trading through this, using old website, vans etc. I am going to inform liquidator and Docs. Is it a lost cause, will they get away with this?
 
If the previous company was a limited company and assets transferred/sold to the new company then I believe they are clear.
 
Really?? I find that startling. They basically ran one company down to write off debt and it's legal?? Can you let me know how? Pls & thks
 
Happens all the time, a limited company is its own entity, it is that entity that gets into debt unlike a sole trader when it would be the individual
 
Ah I understand that but directors have limited liability protection provided they comply with company law
They are not supposed to act in a manner that will deliberately harm a company. Not being smart, but have you any specialisation in company law and/or director obligations? Thka
 
The company has the limited liability protection not the directors.

Companies routinely sell assets to other companies often for nominal amounts.
 
In the case that you cite Alex24 unless you have first hand hard evidence that the director and the liquidator did something illegal then the director's wife is perfectly entitled to star a business in the same field. If your debt was not properly acknowledged and not processed by the liquidator then there may be a case but probably you will find that once preferential creditors were paid (revenue, bank, liquidator) then there was nothing left.
I know it seems unfair bit what's the alternative, debtors prison like centuries gone by? For the most part people do not abuse the system but I too agree at times perhaps the system is too lenient. Nevertheless go to American and you are expected to fail at least once before being a success.
So unless you have specific evidence in the case there is not a whole lot you can do.
 
My issue is that original company failed to file accounts in last 3 yrs. A new company was set up 9 mha before liquidation and all business was transacted through new company
When old company went into liquidation there wete no debtors or assets to liquidate. Under company law a director can not be involved in a business that is directly in competition with their company. This iz precisely the type of thing the Director of corporate enforcement has been set up to stop. Of course people have right to make mistakes and fail but not to deliberately defraud their creditors?
 
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