If your company goes into insolvent liquidation, you need to apply for court permission to use the same company name for any new venture in the next five years. Our solicitors have years of experience dealing with court applications and can advise you on the implication and risks of re-using your business name.
To find out more on how we can help, call us on 0808 271 2602.
What Is A Phoenix Company?
A phoenix company is a new company which arises from the ashes of the old one, usually after a previous director or shareholder buys a company out of a formal insolvency process. The Insolvency Service investigates cases where they think directors have used ‘phoenix companies’ to avoid paying creditors, through deliberate misconduct or negligence. It’s important you follow the law if you’ve set up a phoenix company as failure to do so can have serious consequences.
What Can Happen If I Don’t Seek Court Permission?
You can face criminal and civil sanctions if you don’t get court permission for re-using your insolvent company name. This applies if you were a director of the insolvent company in the 12 months before it went into liquidation. The Insolvency Service could prosecute you if you’re a director, shareholder or even an employee of the new company,
The penalties for breaching the law are serious. You could be:
- Held personally liable for the debts of your new company.
To avoid these penalties, the best and safest option is to get permission from the court to re-use the name of your liquidated business. The court will look at your application and work out how responsible you were for the failure of the insolvent company. If the court accepts your application, the judge will give you permission to re-use the name.
How Can We Help?
Over the years, our lawyers have worked with many former directors to obtain Court permission to re-use a company name. If you do decide to re-use the name of company in Liquidation with which you have been associated, we can help. We’ll provide expert advice and guidance to make sure you comply fully with the law, especially when you’re registering or using the new company name.
We’ll send you a questionnaire to obtain the necessary information to prepare your court papers and submit your application. The application process can take between six to eight weeks and we’ll keep you updated at each stage.
With offices across the UK, we can help you wherever you’re based.
Our solicitors can help you with court applications and advise you on the risks of re-using your business name. Give our team a call on 0808 271 2602 or get in touch online.