Court grants leave for director to continue with business after liquidation
- AuthorMichael Stevens
Michael Stevens, Solicitor based out of our Commercial office in Wynyard, has successfully obtained an Order pursuant to s216 of the Insolvency Act 1986, from the Company and Insolvency Division of the High Court.
The Order gives permission to the director of a recently liquidated company to act as a director of a new company with the same name, which would otherwise be prohibited and carries serious penalties if breached. Obtaining the Order involved liaising with the Liquidator of the original company, and the Secretary of the State for Business, Energy and Industrial Strategy to reach agreement of all parties ahead of the Hearing.
The Order allows the former director to run the new company and trade in the business that had been successfully growing until an unforeseeable event caused the company to enter into insolvent liquidation. The business can now pick up where it left off.
The law surrounding the use of the name of a liquidated company can be tricky, and the lawyers at Tilly Bailey & Irvine Law Firm are happy to speak to anyone who requires advice on such a matter.