Limited company...


J

John Smith

I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up a
new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?
 
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T

Tiddy Ogg

I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up a
new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?
I'm almost certain there are ways of doing just that. That's what
you'd pay an accountant for.
 
I

In400metreskeepright

John Smith said:
I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up
a new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?
ahh such a moral dilemma, it can be done, is done and there's no law to stop
it.

....like the MP's claiming for mortgages when they don't have one.
 
J

john

In400metreskeepright said:
ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !
 
I

In400metreskeepright

and the puncher will be subjected to the GBH laws...
 
J

John Smith

Tiddy Ogg said:
I'm almost certain there are ways of doing just that. That's what
you'd pay an accountant for.
I see, so probability of getting back wages even after going to court is?
 
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I

In400metreskeepright

Peter Saxton said:
I very much doubt that a punch in the face would be classed as GBH.
oh no, go down to your local nick and punch the duty sergeant...
 
P

Peter Saxton

oh no, go down to your local nick and punch the duty sergeant...
Sorry, I'm dealing with reality.

You obviously don't know the difference between GBH and assault.
 
I

In400metreskeepright

oh dear a smart arse...


Peter Saxton said:
Sorry, I'm dealing with reality.

You obviously don't know the difference between GBH and assault.
 
P

Peter Saxton

oh dear a smart arse...
You would know what assault was if you were brave enough to act in
public like you do behind a computer screen.
 
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I

In400metreskeepright

I repeat, a smart arse...


Peter Saxton said:
You would know what assault was if you were brave enough to act in
public like you do behind a computer screen.
 

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