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!

[ComputerGuru]

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

All well and good using Bailiffs but it will cost for a judgement then paying the Bailiffs is this good money after Bad if the True owner is wealthy its not because he does everything by the book Surely the advice should be to find out if there is any money or assets to obtain to pay this debt?

We have written off the debt. The game now is to make life difficult for the bad guys! All unpleasant but legal suggestions welcomed. I quite liked the report to the insolvency service because it blocks businesses with a similar name. That will wake them up if it is enforced...

[wales01man]

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

All well and good using Bailiffs but it will cost for a judgement then paying the Bailiffs is this good money after Bad if the True owner is wealthy its not because he does everything by the book Surely the advice should be to find out if there is any money or assets to obtain to pay this debt?

[Crazy council]

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

Hi

Once you have registered the debt through court, formally, tell the baillifs firms you will pay them the fee, and give them all the details,,, tell them they have also ripped of others... The baillifs can use every trick in the book against them... sometime the people will just pay to get rid of them..

Baillifs can be decent people, and if they know someones on the rip,t my gosh, they can get in the way..... if that what you want ( and i dont blame you ) .. a baillif with the full details can be an asset and a half... They will go on one of there slow days...

Did this mayself once. paid the baillifs, they new there was little chance of any money,, showed them how they had ripped me off and probebly done the same to other small companys... They turned up at there offices on the busyest day... spent hours going through every recipt ect and making them prove everything....

[wales01man]

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

THe world is Corrupt with the Rich and Politicians leading it

[ComputerGuru]

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

My LTD company had no assets we did not liquidate Companies house dissolved the Company afgter we did not file accounts as there was no money to pay for them.
We owed nothing in the end all debts which were monthly accounts were paid up we just stopped selling so did not buy anything to sell.
My big mistake I think I could have kept the money and let everything that followed happen

Sounds like the right way to have handled it anyway. You paid your debts and ended up with no liabilities. If only the rest of the world was that honest!

[wales01man]

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

My LTD company had no assets we did not liquidate Companies house dissolved the Company afgter we did not file accounts as there was no money to pay for them.
We owed nothing in the end all debts which were monthly accounts were paid up we just stopped selling so did not buy anything to sell.
My big mistake I think I could have kept the money and let everything that followed happen

[ComputerGuru]

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

companies house shows active. accounts now late. They have no assets because they have sold or disposed of them. We can prove that their server arrived at a new location and that one of their laptops is now in use with the new company. Everything else has been cleaned enough for us to have lost touch. We have been contacted by schools and charities that have lost thousands to these guys for their stock in trade which has now "disappeared". We just would like to make them squirm.

You say they don't have to liquidate if they have no assets but surely that can't be right? They have no assets because they have given them away. If I tried something like that they would throw away the key...

[wales01man]

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

Have you checked Companies House to see the status of this company are their accounts up to date or late?

Them telling you unofficially that they were going to liquidate means little a director running another company is not wrong maybe they are not bothering to liquidate as they have no assets unless you know different they can wait to be dissolved by companies house what you hear about them is not much evidence unless you have access to their bank accounts you will never know if the stock was stolen or sold.

Sorry to be so negative but Companies play with the rules all the time to get a Director struck off and banned is not easy

[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!

[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.

[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.

[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!

[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?

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.