Legal status of 'trading as'

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RobinBHM

Free Member
Apr 14, 2012
420
126
  • #1
    Hi,
    I run a limited company, the landlord has issued a commercial rent arrears recovery (CRAC).

    The company has a tenancy at will.

    My concern is that on checking it, the landlord has written the tenant as Mr Xyz, trading as Widgets Ltd also the invoices for rent are written out as Mr Xyz trading as....

    My business doesnt use a trading as name, just the Ltd company name. The bank account is just in the name of the Ltd company.

    although this is incorrect, does it have any legal status? -IE can the landlord persue chasing any money from me personally -ie from my home etc?

    TIA
     
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    RobinBHM

    Free Member
    Apr 14, 2012
    420
    126
  • #3
    Hi Wavejumper, many thanks for your reply.

    No there is no personal guarantee on the tenancy at will which was dated and signed in 2016 (tenancy agreement made this day of....). my name is on it and its signed by myself, but there are personal details like my home address.

    the first lease was in 2000 and that did have myself listed as a guarantor -I dont know if the more recent tenancy at will would have superceded this or not. The original lease gave a commencement date but no end date, although it did give an annual rent.
     
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    Engage Legal

  • #9
    On the guarantee point, it will depend on the terms of the 2016 agreement and whether that overrode the pre-existing guarantee.

    On the trading as point, at first instance this would suggest you personally are liable rather than the company, although you seem to have arguments which would suggest otherwise. In what name is the arrears recovery form?
     
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    RobinBHM

    Free Member
    Apr 14, 2012
    420
    126
  • #13
    Engage Legal said:
    On the guarantee point, it will depend on the terms of the 2016 agreement and whether that overrode the pre-existing guarantee.

    On the trading as point, at first instance this would suggest you personally are liable rather than the company, although you seem to have arguments which would suggest otherwise. In what name is the arrears recovery form?
    Click to expand...

    the original lease and subsequent leases are in the name the Ltd company
    the latest tenancy at will is written as: my name T/a XYZ Ltd company -which I didnt notice and signed it.
    The arrears recovery form has it as: my name t/a Ltd Company.
    It seems like Ive been caught out by the landlord, the company has always operated as the company never in my name or anything else -its never been a trading / as.
     
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    Michael Loveridge

    Free Member
    Aug 2, 2013
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  • #14
    If it ever got to court I'd be confident that the court would take the view that the lease was to the limited company, not you personally, and that the way it was expressed in the lease was just down to incompetence by the landlord.

    This view is reinforced by the fact that an individual can't trade as a limited company.

    It's also inherently unlikely that what I assume is a one man limited company should choose to abandon the protection of limited liability and take out a lease in the personal name of its director. The landlord would have to prove that you had actually intended to do this, and would be unable to do so.

    It follows that the threat in the rent demand is to the company and not you personally.
     
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    RobinBHM

    Free Member
    Apr 14, 2012
    420
    126
  • #15
    Michael Loveridge said:
    If it ever got to court I'd be confident that the court would take the view that the lease was to the limited company, not you personally, and that the way it was expressed in the lease was just down to incompetence by the landlord.

    This view is reinforced by the fact that an individual can't trade as a limited company.

    It's also inherently unlikely that what I assume is a one man limited company should choose to abandon the protection of limited liability and take out a lease in the personal name of its director. The landlord would have to prove that you had actually intended to do this, and would be unable to do so.

    It follows that the threat in the rent demand is to the company and not you personally.
    Click to expand...
    Many thanks for that.

    I couldn't see how an individual could trade as a limited company.

    the company employs 4 people -its not a one man band and I am paid PAYE as an employee. The rent payments of course are paid from the Ltd company bank account not me personally.
     
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