Don't know if anyone can help me here and there's a bit of a rant thrown in but anyway:
Company A is broke, no money at all and the directors have been keeping it alive for the last 2-3 years from personal funds.
The company has to close eventually but all debts are paid, thanks to the directors personal inputs.
However, the company has a couple of employees and the company cannot afford to pay them their statutory redundancy so they apply to the Social Insurance fund to pay the redundancy
The SIF pays the redundancy and then the Dept of Jobs, Enterprise etc writes to the company looking for 40% of the redundancy paid out.
After explaining to the Dept that the company has no money and showing them the Balance Sheet with no assets and just a directors loan as a liability, the Dept says that it is their policy to not write off the 40% claim
So now the company cannot go for voluntary strike-off because the directors cannot sign a declaration stating that the company has no assets or liabilities. Instead the only option is an expensive liquidation procedure, purely as a result of one government creditor who refuses to write-off the amount they are owed despite the glaringly obvious fact that they will get nothing through the liquidation process anyway.
Surely there is some way around this?
Company A is broke, no money at all and the directors have been keeping it alive for the last 2-3 years from personal funds.
The company has to close eventually but all debts are paid, thanks to the directors personal inputs.
However, the company has a couple of employees and the company cannot afford to pay them their statutory redundancy so they apply to the Social Insurance fund to pay the redundancy
The SIF pays the redundancy and then the Dept of Jobs, Enterprise etc writes to the company looking for 40% of the redundancy paid out.
After explaining to the Dept that the company has no money and showing them the Balance Sheet with no assets and just a directors loan as a liability, the Dept says that it is their policy to not write off the 40% claim
So now the company cannot go for voluntary strike-off because the directors cannot sign a declaration stating that the company has no assets or liabilities. Instead the only option is an expensive liquidation procedure, purely as a result of one government creditor who refuses to write-off the amount they are owed despite the glaringly obvious fact that they will get nothing through the liquidation process anyway.
Surely there is some way around this?