Company liquidated after CCJ to avoid debt - legal advice

[deepee]

Hi,

We leased a commercial unit (that we own on a private basis), to a Ltd company who have failed to pay us rent. The contract was in the Ltd company name AND the two directors personally.

We took civil action for the recovery of the debt and were granted the judgment. We did this against the company and ONE of the directors.

The company has since liquidated.

We discovered that the same directors had set up a new company a short time before the CCJ was issued and was within 5 months of the liquidation.

The new name is so similar to the old name that it is identical. As an example, the company was ABC Company Ltd and the new one ABC Company Centre Ltd.

As the CCJ and judgment is in the liquidated company name (and one director's name), is there a legal process that I can seek the new company name be added to the judgment/CCJ given that it was setup while

1. the liquidated company was facing legal action,
2. is almost the same name
3. Has the same directors
4. Trades from the same address.

I believe I can add the 2nd director to the CCJ and Judgement as he was on the signed lease, but I feel adding the new company (if possible) gives more clout.

I am prepared to pay a solicitor to pursue this, but I wanted to check my possible options first.

Any advice will be much appreciated.

Thanks

 

[ChrisCallaghan]

The fact that the new company has a similar name would not grant you the ability to add the new company to the CCJ. There are several ways in which directors may legally re-use a liquidated company's name or similar. See the following for reference: https://www.gov.uk/government/publications/re-use-of-company-names/re-use-of-company-names

Even if the new company is in breach of S216 of the Insolvency Act, it still wouldn't give you the legal right to after it. If you feel they are in breach, you could contact the In Insolvency Service, who may issue fines.

I certainly think seeking legal advice about going after the other director is the more sensible route. I'm unsure whether you could 'add' them to the existing judgement or file a new CCJ, maybe other members will the comment their thoughts shortly.

 

[The Resolver]

You cannot have the second company added to the existing jusgment. It is a separate legal entity. However the directors are guilty of an imprisonable offence under s216 of Insolvency Act 1986 if they trade under a confusingly similar name. However, it is not an ooffence if they have obtained permission to do so from the court to use the new name ,or if they bought most of the assets from the liquidator under a process in which the creditors are infromed and a notice is pubished in the Gazette.

Subject to the facts , I may be able to help you reach a resolution with the directors . PM or Email me at [email protected]

 

[Elliot Green]

A person who is owed by a successor company in this type of situation can in certain instances bring Section 217 of the Insolvency Act 1986 into effect. It has the effect of making the director in certain instances jointly liable for the debts owed by the *successor* company. Not quite the situation here by the looks of it.

However, as @Chris Callaghan says take legal advice and consider if you can enforce against directors personally.

 

[Gyumri]

I believe I can add the 2nd director to the CCJ and Judgement as he was on the signed lease,

You cannot add the 2nd director. Your claim and judgment has been concluded. However, the fact that you elected to sue only one director and their former company would not necessarily bar you from bringing proceedings against the 2nd director.

I am surprised as the judge must have been why you did not also sue the 2nd director, as he was also a party to the lease. You might have some practical reason why you couldn't do so at the time.

If there were 10 directors and you chose to sue each one after the other resulting in 10 separate trials, it might be argued that you were abusing the court system.

 

[Elliot Green]

You cannot add the 2nd director. Your claim and judgment has been concluded. However, the fact that you elected to sue only one director and their former company would not necessarily bar you from bringing proceedings against the 2nd director.

I am surprised as the judge must have been why you did not also sue the 2nd director, as he was also a party to the lease. You might have some practical reason why you couldn't do so at the time.

If there were 10 directors and you chose to sue each one after the other resulting in 10 separate trials, it might be argued that you were abusing the court system.

You could not realistically sue 10 people on the same claim in a staggered fashion but you can elect to sue one and not another.

 

[Michael Loveridge]

Why are you even thinking about this? You have a judgment against the director so just enforce it against him.

 

[Newchodge]

We did this against the company and ONE of the directors.

Do you mean you somehow claimed against a single legal entity that was the Ltd company and1 director? If you claimed against both the Ltd company and against one director, as has been said, enforce against the director.