If a private limited company goes into volantary liquidation and owes revenue money..

[jimmyd]

If a private limited company goes into volantary liquidation and owes revenue money will revenue come after the directors?

 

[dicey_reilly]

Re: Revenue

Hi Jimmy

Limited liability (Ltd) means that the liabilities af the company are limited to the assets (including capital) of the company. Directors should have no personal liability unless either

a. They individually or jointly signed 'personal guarantees' for specific debts/suppliers.

or

b. They acted fraudulently (e.g. continuing to trade/seek credit while insolvent / or knowing they could not meet their obligations.)

Regards
Dicey

 

[ubiquitous]

Re: Revenue

Hi Jimmy

Limited liability (Ltd) means that the liabilities af the company are limited to the assets (including capital) of the company. Directors should have no personal liability unless either

a. They individually or jointly signed 'personal guarantees' for specific debts/suppliers.

or

b. They acted fraudulently (e.g. continuing to trade/seek credit while insolvent / or knowing they could not meet their obligations.)

Regards
Dicey

This protection was diluted by revisions to the Companies Acts in recent years. Get professional legal advice if your query relates to a real-life situation.

ps Any chance of editing this thread to give it a meaningful title?

 

[hhhhhhhhhh]

Re: Revenue

b. They acted fraudulently (e.g. continuing to trade/seek credit while insolvent / or knowing they could not meet their obligations.)

As above there is no fixed answer it will depend on how the directors acted

 

[jimmyd]

Re: Revenue

Thanks for the quick responses.