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[Finance] Dissolving a company



L

LockStock

Active member
Jan 29, 2008
140
Sussex
hoping someone may be able to give me some advice, for a number of reasons I’m dissolving a company, something a friend and I tried which just didn’t quite work out.

My question is- one of the staff racked up a number of parking tickets, both council and private that have only just come to light.
its a limited company and the vehicle is registered to the company.

There is no money left in the business, can they chase me personally
 




Eeyore

Eeyore

Colonel Hee-Haw of Queen's Park
NSC Patron
Apr 5, 2014
26,676
Not if it's a limited company, no. It's a company debt.
 




Bold Seagull

Bold Seagull

strong and stable with me, or...
Mar 18, 2010
30,567
Hove
LockStock said:
hoping someone may be able to give me some advice, for a number of reasons I’m dissolving a company, something a friend and I tried which just didn’t quite work out.

My question is- one of the staff racked up a number of parking tickets, both council and private that have only just come to light.
its a limited company and the vehicle is registered to the company.

There is no money left in the business, can they chase me personally
Click to expand...
They can’t chase you personally but any remaining debts the company has changes the process of dissolving the company to say a CVL. It may end up costing more in fees than the fines - so worth exploring.
 
Last edited:






L

Lenny Rider

Well-known member
Sep 15, 2010
6,179
Difficult one, I'm guessing relations with the said former member of staff mean they won't be stepping up and paying the fines they incurred?

No expert, but if there's no money left and the companies wound up, then the Council and the private firms can't chase shadows.
 


mejonaNO12 aka riskit

mejonaNO12 aka riskit

Well-known member
Dec 4, 2003
22,094
England
Are any assets associated to the business? My understanding is an Insolvency Practitioner would look to realise as much potential by the sale of business assets to meet any outstanding creditors that remain at point of closure.

Basically the difference between a MVL (closure of a solvent business with no debts owed) compared to a CVL (closure of a business that will have debts outstanding and will likely be unable to repay all creditors)
 






Bold Seagull

Bold Seagull

strong and stable with me, or...
Mar 18, 2010
30,567
Hove
mejonaNO12 aka riskit said:
Are any assets associated to the business? My understanding is an Insolvency Practitioner would look to realise as much potential by the sale of business assets to meet any outstanding creditors that remain at point of closure.

Basically the difference between a MVL (closure of a solvent business with no debts owed) compared to a CVL (closure of a business that will have debts outstanding and will likely be unable to repay all creditors)
Click to expand...
I’m imaging the cost of a CVL in fees compared to a standard dissolving is going to be more than the total of some parking fines.
 


mejonaNO12 aka riskit

mejonaNO12 aka riskit

Well-known member
Dec 4, 2003
22,094
England
Bold Seagull said:
I’m imaging the cost of a CVL in fees compared to a standard dissolving is going to be more than the total of some parking fines.
Click to expand...
Indeed. I am just pointing out that if the debts are in the business name then they would need to be settled and it can't be just an MVL with that hanging over it.

Settle the parking fines. Close the business as a solvent one would be my understanding but I'm not expert.
 


Bold Seagull

Bold Seagull

strong and stable with me, or...
Mar 18, 2010
30,567
Hove
mejonaNO12 aka riskit said:
Indeed. I am just pointing out that if the debts are in the business name then they would need to be settled and it can't be just an MVL with that hanging over it.

Settle the parking fines. Close the business as a solvent one would be my understanding but I'm not expert.
Click to expand...
Agree with that advice, also will prolong the dissolving of the company far longer.
 














Justice

Justice

Dangerous Idiot
Jun 21, 2012
21,524
Born In Shoreham
I often check companies accounts if they ask me to work for them especially if they are on the smaller side. I took a biggish project on as they had £1m cash in the bank all invoices paid within a day.
The ones with f all in the bank are massive red flag tin pot outfits.
For advice if anyone’s newly self employed.
 


D

dsr-burnley

Well-known member
Aug 15, 2014
2,757
I don't know the details, but there are circumstances when - if the company is not wound up in the right way - the directors can become liable for all company debts.

This doesn't just refer to known liabilities like parking tickets, but also future possible liabilities like court cases or insurance claims. I would take professional advice.
 


S

Shropshire Seagull

Well-known member
Nov 5, 2004
8,866
Telford
If its parking tickets, maybe @LadySeagull could advise?

I know the V5 is just the registeted keeper of a vehicle but can you prove who owns the car? If the company does, I suspect you ought to use the proceeds of its sale to pay any creditors?
 




M

marlowe

Well-known member
Dec 13, 2015
4,431
From what I've observed of people closing down limited companies Companies House and the Insolvency Service are an absolute joke and don't appear to have the motivation to enforce anything. The business owners simply don't submit accounts when theyre due and the company is then struck off a few months late with no comeback for the directors.

There is supposedly all the legislation within the Companies Act which company directors are supposed to abide by but when they don't Companies House just turn a blind eye
 


S

Shropshire Seagull

Well-known member
Nov 5, 2004
8,866
Telford
When I dissolved my limited company a couple of years back my accountant told me it was important to ensure there were zero assets. So empty any bank accounts and sell all assets first. Something about the assets going to the government ....
 


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