Thousands of companies are placed into liquidation on an annual basis. The Insolvency Service website provides quarterly statistics on those numbers. Click the link in this article to read the statistics.
Many successful business owners and Directors have had business failures in their journey and so, liquidation or a closure of a business does have the same stigma to it as it did twenty years ago but starting a new business must be carefully considered.
It is important to learn from Liquidating your business as it can bring a sense of relief when things don’t work out.
The legislation allows you to form another Company despite the previous one being liquidated, if you have not been disqualified from being a Director. The process which determines whether you should be disqualified is managed by the Liquidator and the Insolvency Service. This process takes up to two years and is part of the Directors Disqualification Act 1986.
If action was being commenced against you as the Director of the existing Company in liquidation you can still be a Director of a new company (until the decision has been made to disqualify you).
In this situation there are various other matters to consider, one of which is the name of the new Company. This is explained in one of our other articles which refers to Section 216 and 217 of the Insolvency Act 1986.
Next Steps
If you want to find out anything further about this topic then please feel free to call on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email vee@navigatebr.com.
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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