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Monday, 9 January 2012

Director's disqualification after company wound up by HMRC

We received a call today from someone whose company ceased trading and was wound up by HMRC with debts of £100k.  HMRC has now initiated disqualification proceedings which may result in the DBIS disqualifing the director for 4 years.

Allowing the company to be wound up by HMRC for a large debt and hoping that is the end of it is not a good idea.  If you are disqualified as a director you can also be prevented from having a controlling stake in a business.  In the event that you breach this then you may be liable to criminal proceedings.

The best option is to go for a creditors voluntary liquidation as this brings an orderly close to the business.  The liquidator will still have to report on the directors conduct but if you have done nothing wrong then you should not worry and it will give you an opportunity to start again.

1 comment :

  1. Surely if the directors have done nothing wrong, "HMRC" (is it really them launching disqualification proceedings?) will either take the decision not to proceed with the action or will fail in it.

    A liquidator appointed in a voluntary liquidation has the same responsibility as a liquidator in a compulsory winding up to report misconduct so one would hope the outcome would be the same

    Are you suggesting otherwise?

    ReplyDelete

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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