IMM

Will I be notified when a winding-up order is made?

As a Director of the company you will be aware whether any Creditors are pressing for payment by letters, statutory demands and court proceedings. These may lead to a petition to Wind Up the company and once you have this you must take advice quickly - DO NOT IGNORE.

Can the winding up be stopped once the order has been made?

The Winding Up process can only be stopped by the court. If you wish the court to cancel a Winding-Up Order you need to apply to the court within 7 days of the order - this is called recession. You really should seek professional advice at a very early stage.

If the company is still trading, what will happen?

The Official Receiver will usually visit the company's premises to meet you (Director/s) in order to assess the situation. The Official Receiver has limited powers to continue a business and will use them in very few circumstances so any employees are very likely to be dismissed and the assets and premises secured. Trading is very unlikely to be allowed to continue.

What will happen to me once my company has been wound up?

You will no longer have control of the company's business, assets and property. Most of your powers as Director will cease and, in general, you are no longer entitled to act for or on behalf of the company (although Directors still keep some very limited powers, for example to appeal against the order). It follows that you will not be able to manage the affairs of the company on a day-to-day basis and you cannot dispose of company assets for your own benefit.

What information do I have to supply and when?

If the Official Receiver did not interview you immediately when the Winding-Up Order was made, they will write to you to arrange an appointment for you to attend at their office. The letter will give the name of the person dealing with the Liquidation and will tell you what you have to bring with you.

Almost all of our clients admit that they should have contacted us at an earlier stage to prevent and diffuse the potential consequences, however, from experience it is rarely too late for us to help you so give us a call as soon as you see some warning signals and make it easier on yourself.

Mike Smith - 079 1234 4394 or mike@imm.me.uk

Tony Smith - 0791 2211 777 or tony@imm.me.uk

Office - 01903 891 586

Do I have to supply information about the company to the OR/IP?

Yes, you have a duty to provide information and co-operate with the Official Receiver/Insolvency Practitioner. Failure to co-operate is a serious matter and can result in your being publicly examined by the Official Receiver before the court, where Creditors may also ask questions. If you do not attend such an examination without giving the court a good reason, such as serious illness, the court may issue a warrant for your arrest. Your failure to attend or refusal to give information may be treated as a contempt of court, for which the penalties may be a fine or imprisonment or both. It will also be a factor in deciding whether you are fit to be a Director.

Will I have to pay any of the company's debts?

You may have to contribute to the company's assets if you have misapplied company funds or if the company has traded wrongfully or fraudulently. If you have guaranteed any of the company's debts, it means that you have agreed to pay the debt if the company cannot. When a Creditor becomes aware of the Liquidation, you may be asked to make full payment subject to the terms of the guarantee.

During this Liquidation, can I act as the Director of another company?

You can act as the Director of another company unless you are subject to a Disqualification Order, have been given a Disqualification Undertaking, are an Undischarged Bankrupt or are subject to a Bankruptcy restrictions order or undertaking. A Disqualified person must obtain the court's permission to act as a Director or to take part in promoting, forming or managing a company.

Can criminal proceedings arise from Insolvency procedures for Directors?

The 'OR' is required to report any evidence of possible criminal offences by Directors that they uncover while investigating a company's affairs to The Insolvency Service's Corporate and Business Services. A decision is then taken on whether the matter should be referred to the Business, Enterprise and Regulatory Reform's Solicitors (Prosecutions) or other prosecuting authority to consider proceedings.
Examples of possible offences are:

• Companies Act 1985 - failure to keep proper accounting records or fraudulent trading.
• Insolvency Act 1986 - concealing assets or material omissions from a statement of affairs.
• Company Directors Disqualification Act 1986 - a Disqualified person or Bankrupt acting or taking part in the management of a company.
• Theft Acts - misappropriating a company's funds or assets for a Director's personal benefit.
• The court may also make a disqualification order on the conviction of a Director for a criminal offence in connection with the management of a company.

Can I start another company in the same name?

In general no, you cannot be involved in another company or business that has or uses a name which is so similar that it suggests that there is an association with the failed company. This restriction lasts for 5 years after the 'Winding- Up', however, this is a complex area and there are exceptions but you will need to take professional advice. If you need any help we will be happy to provide you with free advice on the number shown.

Get in Touch Now - Don't put it off any longer!

If your business is giving you headaches, then don't delay - call us now on 08453 479 822 or 01903 891 586. The sooner you get in touch, the more options will be open to you.

It costs you nothing to find out your options as we offer a free first meeting and we promise that by the end of that meeting you will have your options available to you.

Alternatively, you can email either Mike or Tony at: mikes@imm.me.uk or tony@imm.me.ukand we will get back to you straight away to give you your options.

If you would prefer to speak with Mike (our senior consultant) directly please call him on his mobile - 079 1234 4394.

We always go the extra mile for each individual client and we do not treat you like 'just another number' so call us today and see how we can help you.

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