directors changed company to a non-national

U

UFOman

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hiya Folks, a limited company owes me 17k for 2 years, we got judgement against the company, but it seems now the directors have resigned from the company and sold it to a non-national with no assets....i know the directors have assets, would this be a case for the DCE?

what advice would you have?
 
It is not about what assets the directors have, but about what assets the company has in its accounts.
 
Indeed. It matters not what assets they have.
 
cheers for the help!, what im wondering here, is if i chase the company that is now owned by non-nationals im wasting my time, i think it was transfered to the non-nationals in order for the directors/company not to honour its debts....

I mean, say, if you have a company that owes One million, would it not be easier for you to sell it for a EURO rather than liquidate which would involve costs of liquidator etc....
 
You still cannot chase the directors. The directors are separate and legally separate legal entities from the company. Even if they hadn't resigned you still could not make them pay up in their personal capacity.

If the company has no assets you will get nothing.

I mean, say, if you have a company that owes One million, would it not be easier for you to sell it for a EURO rather than liquidate which would involve costs of liquidator etc....
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It would make no difference to the company.
 
Hi there,

There are circumstances in which the Directors are liable for the debts of the company (reckless/fraudulent trading etc) but proving this is a difficult expensive road.

How do you know that the company was sold? Are you sure that it wasn't just a change of directors?

Have you send a Section 214 letter to the company? Is it still trading?

Kate.
 
thank you so much Folks!, im kinda new here and this thing and you people are so good in helping people like me!

the company owes me the 17k, since jan '08, i got a letter (not a personal guarantee from director that he'd pay 2k per month witch didn't happen), they sold the client base in jan, and in april of that year the transfered the company to a non-national, so, i would assume the stripped anything good from the company, i've checked this out on checkit.ie, tis a site that shows returns etc
 
That doesn't make sense to me UFOman. I don't know why anyone would buy a company with no assets from someone else. There is no benefit to the purchaser, only risk. It's cheap and easy to set up a new company with no history and no creditors.

Sorry to ask again but are you absolutely sure that the shares were sold to the third party and not simply that this man was appointed as director? If you like you could PM me the company name and I will do a quick check for you.

If the shares were sold then presumably the company is still trading. You could write again to the company calling upon the company to pay the debt within 21 days of the date of your letter and notifying the company that if it fails to do so you will petition the courts to wind the company up (section 214 letter). Winding the company up costs money of course so it may not be a practical option for you. It is only in this process that you will find out if the directors are guilty of an offense that would make them personally liable to you. Do you know of any other creditors out there?


If the directors sold assets of the company (the client base), then took that value out of the company (dividend or similar) knowing that what was left would not pay the liabilities, that could well amount to fraudulent trading/preference or at the very least reckless trading. The timing of everything is very important



Have you taken legal advice UFOman?
 
I also do not get the non nationals bit. Every company has to have at least one irish resident director,* so they all cant be non nationals

*unless they have a special bond (expensive)
 
Both directors can be non nationals. One just needs to be resident in Ireland.
 
Joe Q Public said:
Both directors can be non nationals. One just needs to be resident in Ireland.
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No need for any Irish resident directors anymore, one must be a resident in an EEA country, or else a bond must be in place or an economic link with the state
 
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