What happens to directors
When a liquidator is appointed, if you're a company director:
- you no longer have control of the company or anything it owns
- you can't act for or on behalf of the company
- give the liquidator any information about the company they ask for
- hand over the company's assets, records and paperwork
- allow the liquidator to interview you, if they ask
You can be banned from being a director for 2 to 15 years or prosecuted if the liquidator decides your conduct was unfit.
Re-using company names
If you were a director of a company in compulsory or creditors' voluntary liquidation, you'll be banned for 5 years from forming, managing or promoting any business with the same or similar name to your liquidated company.
The only exceptions to this are where:
- the business is sold by a licensed insolvency practitioner giving the legally required notice
- you get the court's permission to use the name
- you're involved with another company (or other type of business) that's been using the same name as the liquidated company for at least a year