Puff The Magic Wagon!

iTrader: (2)

My last employer still owes me salary etc from when I was made redundant. They cannot be arsed to pull their fingers out as they're busy doing other things. It is not worth my while taking them to court or having them wound up. They ceased trading with the intention of winding themselves up and have a certain amount of money in the bank. I am a preferential creditor & there are no others, the rest are unsecured. The accounts are simple - we have this money & owe that, but we owe James "x" first, so should pay him before dealing with others, but they're not doing sweet FA. All I can do is keep sending them stroppy emails and hassling but

1) They ceased trading 30th September 2003. Is there an amount of time in which that they must wind up their affairs? Or could they just carry on & sort it out sometime in the distant future without legal repercussion.

2) They have sold the assets, such as they were, to another company which they control. I presume a reasonable sum as they had a valuer in to value it. The valuer submitted an invoice to the company that commissioned it, the one going down, and it was PAID IN FULL after the company ceased trading.

Reason I'm wondering is because after the company ceases trading, then the valuer becomes an unsecured creditor as well.

Is that permissable because obviously it dilutes the pot for other creditors (ie me!).

3) If that isn't permissable, then what recourse have I available to me?



Thanks

[Edited by Puff The Magic Wagon! - 1/26/2004 1:34:27 PM]

Scooby96

Was it a Ltd company, Partnership or sole trader?

Edited to add - is it salary or redundancy pay or both?

[Edited by Scooby96 - 1/26/2004 1:45:53 PM]

Puff The Magic Wagon!

iTrader: (2)

Ltd company.

Salary (for August) as preferential creditor

Notice etc as unsecured creditor

Scooby96

So has an official receiver been appointed?

Puff The Magic Wagon!

iTrader: (2)

Nope

They are doing it themselves, voluntary winding up. I understand that they can do that as long as they satisfy statute and legal requirements.

Rich Tee

had a similar situation to this when i was made redundant last year, the company basically ceased trading, although didnt go into liquidation, the ceased in december 2002, at 2 hours notice, didnt pay any of the employees, and didnt go into liquidation

they then preceeded to stip the company by selling everyting off at cheap prices, then eventually were forced into liquidation in April 2003.

By that time there was nothing left, no one got anything, including me and they basically got away with it, the MD set up a new company doing exactly the same thing, (even using the same website under a different address) the day after he ceased trading!!!

Notified the DTI about this, as you can do , and if they think there is evidence of wrong doing they will investigate. However for some reason they thought all this was legitimate.

If the money is significant, I would contact the DTI, or a legal service to see what the suggest, if it isn't then you may just wanna put it down to experience.

Rich

Scooby96

I understand that they can do that as long as they satisfy statute and legal requirements.

For as long as they want yeah but not worthwhile in the long run unless they have very large debts.

Go see the MD at home

Huxley Chick

Know what you mean Puff - the company I worked for went into voluntary liquidation at the begining of Nov last year - still waiting for some money! & it's all being done officially through a liquidator!

You may be entitled to help from the dti (for what it's worth, but anything is better than nothing)

http://www.insolvency.gov.uk/rp/home.htm

Mungo

Ceasing trading is not necessarily a precursor of winding up - there are plenty of dormant companies out there which no longer trade. Obviosuly if a company is wound up, it can no longer trade!
It might be worth a solicitor's letter to speed things along...