Your description suggests he was operating as a one man band.
Wasn't there a second director requirement for limited companies?
I seem to recall I've had this pointed out to me on another thread.
If I'm right, check that there was a valid second director in the company's documents.
Its one thing to suffer a business failure, quite another not to abide by the Companies Act as amended.
FWIW
ONQ.
Who will lend him money, give him credit, stock or work for him.Thanks for the replies. The second director in the first company which was liquidated has nothing to do with this second company. A new person is acting as the second director.
But it is the common director of both companies that is the owner and runs the show.
I understand that limited liability is there to protect the directors and that's fair enough. IMO the director let things continue for far too long and was well aware of the cash flow problems but wouldn't face up to them. The director continued to seek credit from anywhere they could get it until all doors were well and truly shut. The company really should have been liquidated much sooner. Although I certainly do understand that it can be difficult to make that decision and admit failure when you feel that you have put a lot into a business and you are desperate to save it.
I am sympathetic to the director for the experience of having a failed business but a lot of the people who lost out are small businesses creditors and also employees of the business. Employees were left not paid and creditors were left out of pocket for the cost of goods supplied etc.
It just seems that this director can walk away from all these debts, having left a lot of other people in the lurch. The director however has suffered no real financial consequences as they have simply started trading again under a different company name.
Who will lend him money, give him credit, stock or work for him.
See attached
[broken link removed]
Just to clarify onq, there is no problem regarding any single member issues in this situation. There were two directors at all times. And there is no problem with a company having just one shareholder.
Thanks.
... I understand that limited liability is there to protect the directors and that's fair enough.
IMO the director let things continue for far too long and was well aware of the cash flow problems but wouldn't face up to them. The director continued to seek credit from anywhere they could get it until all doors were well and truly shut. The company really should have been liquidated much sooner. Although I certainly do understand that it can be difficult to make that decision and admit failure when you feel that you have put a lot into a business and you are desperate to save it...
Saw the clarification in the other posts, sartay, and I wasn't keeping it going, just clarifying my original comment.
ONQ.
To be exact, it's for the protection of shareholders, who might not be the same set of persons.
It is possible that the behaviour that you describe could be seen as "reckless trading". Have a look at [broken link removed]
Just a thought.. are the reports that liquidators make to the ODCE available for the public to view or are they private? Is it is possible to see how any funds remaining in the company at the time of liquidation were ultimately distributed? e.g. 'x' amount to Revenue, 'x' amount to secured creditors etc.
Yes, you can obtain copies of all filings here: [broken link removed]afaik they are available for download on the cro website - the liquidator has 2 years to file all details of the liquidation, so it could be a while before you can read the reports. In the meantime, you may make a report to the liquidator about your concerns and the liquidatot must take account of your report in his findings.
afaik they are available for download on the cro website - the liquidator has 2 years to file all details of the liquidation, so it could be a while before you can read the reports. In the meantime, you may make a report to the liquidator about your concerns and the liquidatot must take account of your report in his findings.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?