How will winding up my company affect my other company

[bright_future]

I have two limited companies but one (A) is not in great shape and I'm considering letting it be wound up by one of its creditors.

The other company (B) is fairly dormant, but has a positive cash balance.

I'm sole director and 100% shareholder of each. They are in different business sectors, i.e. B is not a clone of A.

How would B be affected by the winding up of A?
Also how would I be affected personally?

As I understand, as A is a limited company, the debts of A are limited to A and not transferable to me personally. Will I be barred from being a director? (which will affect my ability to run B).

Ideally I would let A go, and continue to work with B. I need to make sure however that I can still operate B.

I know that in the run-up to a winding up petition, my bank will freeze the accounts of A (this happened before but in that case I paid the debt and averted the winding up)

Will B's bank (which is the same bank as A's) ever try and freeze B's account before, during, or after the winding up of A, purely because of the winding up of A (ie. B has not done anything wrong)?

Thanks!

 

[Scalloway]

You are only likely to be barred as a director if you have done something really dodgy, been reported by the liquidator, prosecuted and found guilty.

 

[bright_future]

Hi Scalloway, thanks for replying.

That's reassuring and good to know thanks.

What about company B though. In what way, if any, can it be affected by the winding up of A?

cheers

 

[Lisa Thomas]

Hi they are two separate entities so as long as you haven't committed any misconduct that would warrant disqualification, or given any personal guarantees then there shouldn't really be any issues for company B or you personally.

Sometimes if you ask for further lending in a different Co the Bank will want to know the details of the prior Liquidation.

Also allowing a creditor to wind up company A rather than taking steps to liquidate it yourself, voluntarily or through the Courts is frowned upon so the Official Receiver may be a little more scratchy in their investigation as you have a duty to mitigate the position.