How long can a company NOT go into liquidation for?

[ComputerGuru]

One of our clients went under in February, did a moonlight flit from their premises and advised us informally by phone that our debt would not be paid. You take the call, shrug and move on waiting for the paperwork.

Months later we realised that the liquidators have not been in touch yet so we start to dig...companies house and the gazette have nothing about the liquidation. Two of the shadow directors of the old business have emerged in the same trade elsewhere allegedly with the stock from the failed business. The only remaining real director of the failed company is working in a separate business that used to share premises with them until the crash. His approach is that they can't afford a liquidator so he's doing nothing.

1 the ultimate owner of the failed company (through 100% owned dormant businesses) is a wealthy chap who could easily settle the debts. How can we make the pips squeak?
2 surely use of the stock in a separate business is theft from the creditors? Who can tackle that one given that they won't make it easy or obvious?
3 how long can they ignore the business failure given that no-one is going to pay for a winding up order with little hope of any recovery?

We know we won't see our £2.5k again but we would like them to find it a rockier ride than they are expecting. Creative Machiavellian suggestions appreciated!

[MissFM]

Re: How long can a company NOT go into liquidation for?

Hi CG ,

Just to say that, FWIW, I absolutely support you on this, but also have yet to find the nemesis for people who do this.:tinysmile_hmm_t2:

INVHO it has become a business model, made possible by a combination of leaky laws and a regulator without (let's say teeth to bypass the swear filter).

I wish you a great deal of luck. xx

[wales01man]

Re: How long can a company NOT go into liquidation for?

Have you proof of the stock allegedly moving? if its a Ltd company unlikely the rich director will pay out of his own pocket you could issue a SD against the company

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

Hi CG ,

INVHO it has become a business model, made possible by a combination of leaky laws and a regulator without (let's say teeth to bypass the swear filter).

...and also poor credit control at our end! We live and learn but it is good to shake a stick at the bad guys as we have paid for the privilege!

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

Have you proof of the stock allegedly moving? if its a Ltd company unlikely the rich director will pay out of his own pocket you could issue a SD against the company

No proof but it left one building in a van and a new business (I am told) had its stock arrive some time later. Obviously unconnected!

What's an SD? Its a kind of memory where I come from!

[wales01man]

Re: How long can a company NOT go into liquidation for?

SD action before trying to bankrupt them if they have no money not much use not much proof then?
MIGHT BE BYE BYE MONEY

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

SD action before trying to bankrupt them if they have no money not much use not much proof then?
MIGHT BE BYE BYE MONEY

Yes the money has gone but the fun could be just beginning. What I need is some ideas to make their existence a misery. Can they just pretend they just never traded in the old name and not complete the formal process of closing the business? There must be a way to make them take their responsibilities seriously!

[MissFM]

Re: How long can a company NOT go into liquidation for?

Yes the money has gone but the fun could be just beginning. What I need is some ideas to make their existence a misery. Can they just pretend they just never traded in the old name and not complete the formal process of closing the business? There must be a way to make them take their responsibilities seriously!

So one would think - but

[Crazy council]

Re: How long can a company NOT go into liquidation for?

If the companys still active. Register the debit against them through court. Then send a baillif in. They would have to prove the reciepts for the stock if they still have it.

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

If the companys still active. Register the debit against them through court. Then send a baillif in. They would have to prove the reciepts for the stock if they still have it.

That would be worth the court fee. I'll add it to my list! Thanks.

[Tools]

Re: How long can a company NOT go into liquidation for?

An SD is a Statutory Demand

https://www.gov.uk/statutory-demands...atutory-demand

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

An SD is a Statutory Demand

https://www.gov.uk/statutory-demands...atutory-demand

Perfect! That is the info I needed! A Government website that is well written and to the point. It led me to http://www.insolvencydirect.bis.gov....intformcib.htm which seems to be the weapon of choice. Presumably I report fraud, theft and illegal trading and let them get on with it? Just for fun I will do an SD as well and pass the same details to the other creditors whose details I have been collecting.

A dish served cold can be such good therapy!

[davec1960]

Re: How long can a company NOT go into liquidation for?

If the companys still active Register the debit against them through court. Then send a baillif in. They would have to prove the reciepts for the stock if they still have it.

I can't see thst this will do much in the way of inconveniencing the new company as the baliffs will go to old company address and find that there is no stock.
Ballifs may go to new company if OP tells them that old company stock is there. New company can tell ballif that they don't have any old company stock. What will ballif do then other than come away with nothing?

OP may have a route to make old company director squirm if he has not acted in the best interests of the company and allowed stock to be given away or sold below its true value.

[wales01man]

Re: How long can a company NOT go into liquidation for?

If this new company had the others stock however obtained it might now have been sold?
Paying Court fees and Bailiff fees may cost more than is returned if these Directors are as is possible experts at LTD companies and the laws they will not be worried more likely will have a good laugh.

Two and a half grand is a pain to lose but can be offset in company accounts VAT and tax wise maybe time to walk away.

[ComputerGuru]

Re: How long can a company NOT go into liquidation for?

OP may have a route to make old company director squirm if he has not acted in the best interests of the company and allowed stock to be given away or sold below its true value.

Yes I think that is the point. Failure to liquidate properly in a timely fashion is a legal requirement. Giving away all the assets of the company after liquidation without a creditors meeting I think is criminal. This is mentioned specifically in the insolvency rules IIRC. So the plan is to make them address the charge of misconduct as a director. Even if they get away with it, I hope they will have a few sleepless nights and lots of legal costs defending themselves!