Limited Companies liability or personal liable ??

[bambolauk]

My brother purchased a company in 2004. The purchase agreement was that my brother acquired 100% share capital for a fixed price and the agreed payment terms was to pay off the agreed price over a 3 year period of 6 equal instalments. During this period the vendor invoiced the company that my brother had purchased and the invoices where settled in full by the company, however the company ceased trading in October 2006. The original vendor has now contacted my brother personally (through the Court) and is demanding full settlement of the final remaining instalment. My brother informed him that the company is no longer trading and he is insisting that He pays personally for the remaining instalment, IS He liable? Please advice !!!!!

[dzug]

Your brother is probably liable - if he took on the loan himself to buy the company, then the company didn't take on the loan to buy itself and probably shouldn't have paid the instalments.

Depends on exactly how the loan was arranged.

[buildersmate]

You had a valid answer in your duplicate post (I still don't understand why folks do duplicates).
Limited liability applies to the debts of the company - not that your brother has failed to complete payments for purchase of the company at an agreed price.
Can't get out of it that way, sorry.