Directors and shareholders are not liable for the debts of the company, unless they have signed personal guarantees to the bank, suppliers, landlord, finance lease , etc.
To put things in perspective, operating as a sole-trader is the equivalent of being a director of a company and giving a personal guarantee to every party the company ever deals with.
Company’s are disposable by their very nature.
The Limited in Limited Company refers to the fact that the shareholders, directors, and staff of a company are not personally liable for the debts of the company.
Personal guarantees cannot be extinguished by liquidation, they are a personal matter and have to be dealt with outside the Liquidation process.
So the risk of personal financial implications for Directors has to be assessed.
Other than possible liabilities under personal guarantees, the main risk of negative impact to the Directors of a company placed into liquidation is if they are subject to disqualification proceedings by the Insolvency Service, if they consider there has been serious mismanagement of the company, that breached provisions of the Companies Act, Insolvency Act and Company Directors Disqualification Act.
How much does liquidation cost?Online Quote
Making the decision to liquidate my company was one of the hardest things I have ever done. Alisdair and his staff made the whole process relatively painless, I would recommend them to any small business. Jason Nutt, Managing Director
The whole process was handled without any fuss, we were surprised and relieved that it all went so smoothly. Mike Phillips, Company Director
Liquidating online was simple and easy. As soon as I started the process, all the stress went away. Thankyou. James Cannock, Company Director
High quality information, professional and supportive at a challenging time. John Dooner