Has anyone hear of this company and are they legit?

[Lcd83]

Hi. Has anyone ever heard of had dealings with this company?

National company rescue / atherton corporate

They basically buy the shares in a business taking on all liabilities etc allowing you to walk away. If i went through a route like this would there be any risks to myself? Im guessing to good to be true is the case here. I have spoken to them via email through the website and been given a runddown and what it what cost me etc.

I read a similar thread on here regarding a forum member doing something similar so im guessing this is also a bit of an unknown

 

[Elliot Green]

Has there been any recent developments on this?
I am looking to close my business but I am in a sticky financial situation both with corporation tax and an overdrawn Director's Loan account.
Are these 'We buy your company for £1' firms legit? Any advice would be greatly appreciated.

Where an overdrawn director's loan account ("ODLA") is concerned it remains an asset of the company even if you sell the shares in it for £1. The shares are about the ownership of the company. The ODLA is an asset of the company.

Even if it is written off by a liquidator, the director is then potentially liable to be charged personally Section 415 income tax on the released or written off amount because you cannot receive drawings (over and above amounts due back to the director from monies they have lent or are entitled) from a company as a director without either the company or the director suffering some tax. Whenever money changes hands there is the potential for tax consequences.

Usually, the sale of the shares is an odd idea as who wants to pay for an insolvent company which has tax liabilities unless there is a strong brand, database or something that means the company has potential future value.

Happy to have a chat if you wish.

 

[Lisa Thomas]

Has there been any recent developments on this?
I am looking to close my business but I am in a sticky financial situation both with corporation tax and an overdrawn Director's Loan account.
Are these 'We buy your company for £1' firms legit? Any advice would be greatly appreciated.

Yes the development was the company was shut down. See here:https://www.gov.uk/government/news/...shut-down-after-undermining-insolvency-regime

Have a chat to an IP on this forum.

 

[ChrisCallaghan]

Yes the development was the company was shut down. See here:https://www.gov.uk/government/news/...shut-down-after-undermining-insolvency-regime

Have a chat to an IP on this forum.

But apparently still trading!!

Website is still live, and we received an enquiry from a director who was speaking to them last week.

Their website now records that they are trading through ATHERTON CORPORATE PARTNERS LLP - same players as the two companies that were wound up the public interest.

anyone dealing with them has the sense to Google them before handing over any money.

 

[Lisa Thomas]

That's ridiculous!

 

[ChrisCallaghan]

The Insolvency Service really need to fast track director bans for all concerned!

 

[Lisa Thomas]

Absolutely.

 

[Elliot Green]

Not so easy to stop people from trading. Enforcement of the remedies often is a process that moves like molasses at a very pedestrian pace. The system does not really match a stern and effective approach.

 

[Elliot Green]

"Nine-year ban for director of more than 400 companies after he repeatedly undermined the insolvency regime"

No longer available - GOV.UK

www.gov.uk

 

[Lisa Thomas]

Thanks for sharing. He got off lightly, didn't he!

 

[Mark T Jones]

Thanks for sharing. He got off lightly, didn't he!

Yip - quarter of a mil for a ban - there will be plenty of others happy to step in

 

[Lisa Thomas]

Not even the maximum, presumably because it was a voluntary undertaking so got reduced. Directors who have committed misconduct at a much lower level have got that level of ban. Hardly a stern message.

 

[ChrisCallaghan]

Not even the maximum, presumably because it was a voluntary undertaking so got reduced. Directors who have committed misconduct at a much lower level have got that level of ban. Hardly a stern message.

I'm hoping that they are exploring a fraud conviction and a POCA, and that this director ban is just the first stage.

 

[Elliot Green]

Thanks for sharing. He got off lightly, didn't he!

Rather perhaps when you might consider that is about the average for a £50k BBL obtained by overstated turnover.

 

[Elliot Green]

Not even the maximum, presumably because it was a voluntary undertaking so got reduced. Directors who have committed misconduct at a much lower level have got that level of ban. Hardly a stern message.

It *might* have been negotiated down because often the Court Orders in reported cases are lower than what the Insolvency Service seeks when issuing Disqualification proceedings.

 

[Lisa Thomas]

Rather perhaps when you might consider that is about the average for a £50k BBL obtained by overstated turnover.

Exactly.

 

[Lisa Thomas]

It *might* have been negotiated down because often the Court Orders in reported cases are lower than what the Insolvency Service seeks when issuing Disqualification proceedings.

I just assumed they gave 'discount' to save them enforcing an order via court.

 

[Elliot Green]

I just assumed they gave 'discount' to save them enforcing an order via court.

I wonder what message it sends to give a discount for a case where the regime has been subverted and undermined. The nature of that kind of allegation *might* suggest the maximum might have been warranted.

 

[Lisa Thomas]

I wonder what message it sends to give a discount for a case where the regime has been subverted and undermined. The nature of that kind of allegation *might* suggest the maximum might have been warranted.

I may well be wrong, but I kind of thought that was the point of the voluntary undertakings. It saved the hassle of enforcing through court and gave the directors an incentive to accept.

 

[Mark T Jones]

I may well be wrong, but I kind of thought that was the point of the voluntary undertakings. It saved the hassle of enforcing through court and gave the directors an incentive to accept.

True

I don't know about insolvency, but in general courts are actively encouraging discounted penalties for guilty pleas (they don't use the term, but essentially plea-bargaining)

 

[MrSoap]

I regrettably used the Atherton service as I got into a very difficult situation. I was led to believe it was a legal and better alternative than the formal liquidation route. I then ‘phoenixed’ the business and I am still facing pressure from old creditors, not sure what to do from here.

 

[japancool]

I regrettably used the Atherton service as I got into a very difficult situation. I was led to believe it was a legal and better alternative than the formal liquidation route. I then ‘phoenixed’ the business and I am still facing pressure from old creditors, not sure what to do from here.

On what basis are they chasing debts from you?

 

[ChrisCallaghan]

I regrettably used the Atherton service as I got into a very difficult situation. I was led to believe it was a legal and better alternative than the formal liquidation route. I then ‘phoenixed’ the business and I am still facing pressure from old creditors, not sure what to do from here.

Hi @MrSoap ,

I'm sorry to hear that you're in this situation.

The options available to help now may be limited, however I'd be happy to offer you a chat to see what's possible. Ultimately you may need a solicitor, which I can recommend, but in the first instance I'd be happy to talk through your situation, confidentially and without cost or obligation.

Feel free to DM me or reach out using the details in my post signature.

 

[MrSoap]

On what basis are they chasing debts from you?

They are chasing overdue invoices for goods supplied. They can see I am still trading and are finding it hard to believe the company has genuinely been ‘sold’

 

[MrSoap]

Hi @MrSoap ,

I'm sorry to hear that you're in this situation.

The options available to help now may be limited, however I'd be happy to offer you a chat to see what's possible. Ultimately you may need a solicitor, which I can recommend, but in the first instance I'd be happy to talk through your situation, confidentially and without cost or obligation.

Feel free to DM me or reach out using the details in my post signature.

Hi Chris,

Thank you for your response. Would you be free this week for a quick phone call?

Thanks

 

[ChrisCallaghan]

Hi Chris,

Thank you for your response. Would you be free this week for a quick phone call?

Thanks

Hi,

I'll private message you.

 

[Elliot Green]

I regrettably used the Atherton service as I got into a very difficult situation. I was led to believe it was a legal and better alternative than the formal liquidation route. I then ‘phoenixed’ the business and I am still facing pressure from old creditors, not sure what to do from here.

What makes you think the debts are with you?

 

[ChrisCallaghan]

What makes you think the debts are with you?

I think OP already knows the debts are not with them. BUT they are facing the pressure of creditors hassling them because they are trading through a new company, whilst the old company still exists.

You and I know they have no legal claim against oldco, but real world practically isn't so straightforward.

 

[Elliot Green]

I think OP already knows the debts are not with them. BUT they are facing the pressure of creditors hassling them because they are trading through a new company, whilst the old company still exists.

You and I know they have no legal claim against oldco, but real world practically isn't so straightforward.

Chris, I am looking to ensure we have all the pertinent facts.

I am also thinking of Section 217 of the Insolvency Act 1986.

Whilst liquidation might not have happened *yet* for oldco this situation is ripe for a compulsory liquidation to sprout, particularly with the publicity and impact on HMRC in many of these cases.

 

[Lisa Thomas]

This is often an issue for directors who Phoenix. As long as you have evidence the debt is with the old company, they will struggle to pursue newco.

 

[ChrisCallaghan]

Section 217 of the Insolvency Act 1986

Hi Elliot, just been reading up on whether personal liability under s217 could be considered automatic, or if prior court proceedings need to establish the breach and personal liability. In particular I was reading the below:

Liability under section 217 insolvency act 1986 - creditor protection is key - Stevens & Bolton LLP

Where a director acts in breach of the prohibition against the reuse of company names, a liability of the new company under a court judgment is automatically...

www.stevens-bolton.com

What are your thoughts on this issue? In MrSoap's case this is currently not relevant, as their company is not in liquidation, but I'm curious what your thoughts would be?

 

[Elliot Green]

Hi Elliot, just been reading up on whether personal liability under s217 could be considered automatic, or if prior court proceedings need to establish the breach and personal liability. In particular I was reading the below:

Liability under section 217 insolvency act 1986 - creditor protection is key - Stevens & Bolton LLP

Where a director acts in breach of the prohibition against the reuse of company names, a liability of the new company under a court judgment is automatically...

www.stevens-bolton.com

What are your thoughts on this issue? In MrSoap's case this is currently not relevant, as their company is not in liquidation, but I'm curious what your thoughts would be?

I don't think there is a problem with the *automatic* issue if the breach of Section 216 has been established. That is a separate issue to the instance of establishing a debt.