Small Claim vs LTD

[DannyMCR]

Hey there,

I’m in the process of small claims proceedings against a limited company for just short of £10,000 and I’m slightly concerned about the timeline and the behaviour of The Directors.

The company acknowledged the claim and requested extended time to respond. This extension ends in a couple of days.

In the meantime the company directors have resigned from the LTD leaving no directors at all. Two shareholders/posc exist still (one being an ex director). The company still exists and companies house haven’t started any strike off action yet.

The business itself still continues to trade under the same trading name, from the same address, but using a different limited company incorporated in February 2024 (a month before receiving my Letter Before Action).

The limited company names and trading name are all consistent with eachother. I’ve changed these examples:

Trading name: WE MAKE CARPET
Limited Company name: WE MAKE CARPET WIGAN LTD
New Limited Company name: WE MAKE CARPET MANCHESTER LTD

If they don’t respond or provide a defence and a judgment is made against them can you see any problems that may arise with me trying to enforce it?

Thank you

 

[WaveJumper]

Welcome to the UKBF personally I think the short answer to this is the ltd company you have taken action against will now be an empty shell with no assets for those who will enforce any action on the courts and your behalf.

Hopefully others here may have a more positive message and way forward for you.

 

[IanSuth]

looks like a pre pack going through to me

 

[Mark T Jones]

As above

It's likely you will get the judgement, and extremely unlikely you will get paid unfortunately. This looks very much like a phoenix

 

[DannyMCR]

Thank you for the responses. As the invoice only has the trading name and trading address could I start a new claim against the trading name?

 

[DannyMCR]

I have noticed that the original invoice has another LTD company on it - could I request an entity change with the court and enforce that way? This LTD has the same shareholders and directors.

 

[Newchodge]

I have noticed that the original invoice has another LTD company on it - could I request an entity change with the court and enforce that way? This LTD has the same shareholders and directors.

Do you mean the invoice you issued? You need to prove who you supplied, not who you charged!

 

[DannyMCR]

The claim is under the consumer act. The company issued me with an invoice that only has their trading name on it. In the details below I have now noticed one of the payment options on the invoice is to another bank account with the account name “DIRECTOR’S NAME LTD”

Since my initial post I have spoken to a number of HCEA who advised to ask the court to change the entity on the judgement as enforcing against a company with no directors would be extremely difficult.

I’m now trying to gauge whether it would be wise to ask for the entity to be changed to the newly incorporated ltd (WE MAKE CARPET MANCHESTER LTD) or the one which appears at the bottom of the invoice (DIRECTOR’S NAME LTD).

I have since done a check on the latter and note they have considerable assets and cash in the bank.

Thank you

 

[Newchodge]

The claim is under the consumer act. The company issued me with an invoice that only has their trading name on it. In the details below I have now noticed one of the payment options on the invoice is to another bank account with the account name “DIRECTOR’S NAME LTD”

Since my initial post I have spoken to a number of HCEA who advised to ask the court to change the entity on the judgement as enforcing against a company with no directors would be extremely difficult.

I’m now trying to gauge whether it would be wise to ask for the entity to be changed to the newly incorporated ltd (WE MAKE CARPET MANCHESTER LTD) or the one which appears at the bottom of the invoice (DIRECTOR’S NAME LTD).

I have since done a check on the latter and note they have considerable assets and cash in the bank.

Thank you

I am not sure you can make a claim against an entity that did not exist at the relevant time.

 

[DannyMCR]

That makes sense to me. The newest entity was incorporated just before my Letter Before Action. It looks like The Ltd company relating to the director that appears on the invoice in the small print may be my best bet.

I will also have to put in an objection to Companies House dissolving the original company now left without any officers and force it in to liquidation instead. This will hopefully ensure the finances and behaviour of directors is looked in to in relation to the timing of resignation and transfer of assets to the new company.