Areas of Law / Bankruptcy Debt

One month before going into liquidation a director of a limited company formed another limited company and is now working there. Is that legal?

A company director can normally start up another business, but should no’t use the same or a similar name to the business in liquidation other than in special circumstances. This ban is imposed for five years after a company goes into compulsory or creditors’ voluntary liquidation. If a company director is declared “unfit” by the liquidator (because he or she failed to meet their legal responsibilities) they can be disqualified from being a director of a company for between two and 15 years, or prosecuted. You’’re automatically disqualified from being a company director if you’’re declared bankrupt, given a debt relief order or are subject to bankruptcy restrictions.

What our clients say about our lawyers

Thanks for supporting me with advice on this matter. I will definitely recommend you to others who may require your expertise.

Satisfied Client

Read More

About Us

Leading legal advisors, problem solvers – all round good guys! We’re firm believers in a practical, no nonsense approach to law. Forget the jargon, we like to keep it simple – why complicate matters? No stress, no worry, just straightforward solutions to your legal issues. Free legal advice at your fingertips, from the experts to your inbox. is owned and operated by Farleys Solicitors LLP, a member of The Law Society and is regulated in the practice of law by the Solicitors Regulation Authority, Registration No: 484687. Any advice given on this site or in response to any question is only applicable to the law of England and Wales.

Privacy Policy | Terms