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 not 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.