If a company is insolvent am I liable?

kammalla | 19:58 Wed 20th Oct 2010 | Business

6 Answers

Some years ago i invested in a couple hundred shares of a company. About 18 months ago I had a letter from the owner of the company saying the company was in difficulty and he wanted to buy back all shares in exchange for merchandise if people were happy too. I agreed. I had a later letter saying that due to the cost of producing all the merchandise it would not happen but he would find an alternative. I have never heard any more.
Two days ago I had a call from the official receiver but my phone cut out after hello. I googled the phone number and found it was the receivers and called them back yesterday but they couldn't identify who would have called me or why. they suggested it might have been a wrong number and if it was important someone would probably ring back.
The only reason I could think of the receivers calling me would be if they company has gone belly up - not that I can find any indication on the internet. But as I understood my shares had been bought back would I still be liable for any monies owed?

Letting agents or Estate Agents

Stating a employment agency that is for British people only, Would it be legal?

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redcrx

whats the name of the company?

sherrardk

As I understand it, you are only liable to the extent of the money you invested in the business - ie you would just lose the money you invested when you bought the shares. You would not be liable for any debts that the business ran up.

kammalla

Question Author

Striker 3D PLC.

twix123

You wont be liable to pay anything, but if you do actually still own the shares then although you would be at the back of the queue, you could possibly receive a return of funds should the company have a surplus upon final liquidation.
Did you complete a Share Transfer Form or pass the shares back to the owner (Pete Nash)?

Buenchico

The Companies House website shows that Striker 3D PLC became Striker 3D Ltd (through the share 'buy back') on 15 November 2007, and was then was formally dissolved on 20 January 2009.

The nature of a 'limited' company is that the owners of that company are a separate legal entity to the company itself and therefore not liable for the debts of that company.

Chris

Buenchico

PS:
Interesting history here:
http://www.striker3d.com/howwedoit.aspx?pid=3

Chris

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