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Company liquidation

One of my customers has gone into liquidation owing us a six figure sum, but has set up another company and is trading as normal with other suppliers.

He is a director of the new company and was a director of the old company. He trades from the same premises (his own house).

I assume this is legal but how can this be allowed and would any credit checks on his new company show his previous history of his old company?

On Companies house, the new company is linked to the old one. Compostella (Fri 15:54 26/Jun/09)

MBNA Credit cards House blacklisted

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Answers 1 to 9 of 9

rov1200		(Fri 20:13 26/Jun/09) As you say this is quite legal and is called "phoenixing". Because of the state we are in this method is being very widely used and leaving their debts behind only to start again. You can understand why people like yourself want to take matters in their own hands especially when they operate from the same address. http://www.eventmagazine.co.uk/news/search/869 945/Phoenixing-Tempers-flare-phoenix-rises/
caththecrazy		(Fri 21:24 26/Jun/09) Only thing you can really do is make him a prepaid customer should you choose to do business with him again and make sure you keep the history.
Tom Braider		(Fri 23:21 26/Jun/09) You could shop him to the Revenue, although they won;t be able to do anything about teh money he owes you, http://search2.hmrc.gov.uk/kbroker/hmrc/contac tus/search.ladv?sr=0&as=1&cs=ISO-8859-1&sc=hmr c&sf=&sm=0&nh=50&ha=34&tx0=370307&fl0=__dsid:& tx1=2037&raction=view
Twenty20		(Sat 11:13 27/Jun/09) Not quite sure what the link to HMRC has to do with it? I think there's very little you can do. I assume you're on the list of creditors? If the company has actually gone into liquidation rather than Administration then you probably wont get much at all unless you're a priority creditor, which I assume you aren't. Did they actually owe you this six figure sum for products or services already supplied or it is part of a contract where you're yet to supply?
Compostella		(Sat 21:25 27/Jun/09) Question Author It was for products already supplied I know I can't do much about this but my question is about the process that allows them to trade again within a matter of days. I'm not looking for vengance but am just surprised that it's so easy for them to do this. I always thought that if you were a director of a company that went bust, then you couldn't be a director of another company
rov1200		(Sun 00:14 28/Jun/09) To take it so casual after losing more than �100K beats me. How can you manage to walk past his property knowing that you have been taken for a ride by such a large sum. Have you approached him? Why not get the facts! Has he done this to any other creditor?
Skyline D		(Sun 08:56 28/Jun/09) You can only be banned from being a director if formally disqualified under the Directors Disqualification Act which normally means you've been guilty of fraud or wrongful trading or if you are yourself bankrupt. If he's neither of these things then there's no legal reason he couldn't be a director. The company itself going bust doesn't necessarily mean the director did anything wrong or is automatically banned from acting as a director again. It's fairly meaningless anyway. He could still set up and run a new company with nominee directors such as a wife, brother, sister, son, daughter, etc.
Skyline D		(Sun 08:57 28/Jun/09) Oh, and like Twenty 20, I've no idea what relevance "shopping" him to the Revenue has? I expect the Revenue know fine well where he is and what he's doing if he's director of another company from the same address.
Trotbot		(Mon 15:31 29/Jun/09) Nothing to help you I'm afraid, but HM Revenue and Customs will be well aware of him and the new company will have to post security for the VAT amounts in the old company had unpaid VAT liabilities

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