Can You Be A Director After Liquidating A Company You Were A Director Of?

[frazer_d]

A Director business friend has just been notified by his other 2 Directors (husband & wife) that they have used £30k of company funds for personal purchases rather than pay workers. He was told because the Bank has asked for the money back within a month, and they will not have the funds.

He is besdie himself and does not know who to approach, or what to do to keep his existing clients, who have promised him support. This is his first business venture.

Can anyone advise if he should liquidate the current company and open a new one on his own? I believe you cannot open a 2nd Ltd company and be a Director again? Is this true?

[boxtops]

If the company have a firm of solicitors, I'd suggest he contacts them first thing in the morning - this is fraud on behalf of the other 2 directors and he needs proper legal advice.

[LCDMAN]

To answer the question in your title, yes you can. It's done all the time by some morally bankrupt people who start companies, run-up debts and then liquidate owning their suppliers thousands before starting again with a subtly different name, maybe even buying the previous companies assets for a nominal sum (but not the debt!)

Nothing to stop you being a Director of another company in this way (or, indeed, several companies at the same time) unless you are legally disbarred from serving as a Director by the authorities.

[LCDMAN]

I didn't mean disbarred, I meant disqualified - more about that here;

https://www.gov.uk/company-director-disqualification

[chrissa1]

A bankrupt cannot be a Co Director but that is different to a liquidisation of a company. He needs legal advice.

[Peter Pedant]

advice - lawyer - quig