Legal Question (Limited Company)

[peteyt]

Is it legal for a limited company that has contracts ongoing to put themselves into administration and then close without ever actually getting an administrator

Thread moved by mdport. (Forum Moderator) from 'Discuss Anything' as it's more suited here!

[Kimmy]

If you're bankrupt, you're bankrupt. Honestly, contracts are probably subject to clauses stating that if the company becomes bankrupt or goes into administration then the contact becomes void.

[scottish]

I don't believe that's possible

In order to go into administration you need to contact the courts, and I would imagine if you contacted them without stating your intent to get an administrator they would then appoint one to you.

As far as I've always been aware, you legally require a licensed administrator.

[peteyt]

If you're bankrupt, you're bankrupt. Honestly, contracts are probably subject to clauses stating that if the company becomes bankrupt or goes into administration then the contact becomes void.

I don't believe that's possible

In order to go into administration you need to contact the courts, and I would imagine if you contacted them without stating your intent to get an administrator they would then appoint one to you.

As far as I've always been aware, you legally require a licensed administrator.

Basically I hired a web developing company who then where going into administrator and apparently finding an administrator but never replying to my requests for any information on this. They are classed as liquidation on the companies house records but this is because companies house deleted them as they stopped giving the necessary paperwork.

From what I can tell they have claimed to have gone into administration but actually just closed down instead. I'm having problems because of it being a limited company which means the directors have limited liability.

The owners actually own another web developing company now but as its the company I dealt with I can only go after the company and not the people legally. I'm just wondering if what they have done could be illegal and enough ground for a small courts claim.

[scottish]

What did the contract agree to?

Have you paid, how much if so? was anything submitted to yourself by agreement from the contract (WIP's, etc?)

[scottish]

1 Get insolvency details

Find out if the business has actually gone bust and get details of the receiver or insolvency practitioner dealing with it.

If the business is a sole trader (such as a tradesperson working on their own) or partnership, find out whether insolvency proceedings have started.

You can do this by checking the insolvency notices section of local newspapers or by checking the Individual Insolvency Register.

If the business is a limited company, you can contact Companies House.


2 Submit a claim

If the business has gone into liquidation, get the name and address of the receiver or insolvency company.

Write to them to register your claim, explaining exactly how much money you’re owed, and what it’s for.

There’s no guarantee you’ll get all or any of your money back because it's likely the company has many debts.

But if you don’t submit a claim then you definitely won’t have any chance of getting your money back. We think it’s worth at least trying.


3 Use your warranty

If the retailer goes bust and the goods are faulty, you may have a manufacturer's or other third party warranty that’s still valid.
Check your documentation to see if this is the case.

If you’ve been supplied with faulty goods and the company is placed into administration but is still trading, you may be able to get a replacement or a refund for your item in the normal way, under the Sale of Goods Act.

If you have a voucher which the shop will not accept you need to make a claim in writing to the administrators.


4 Claim from credit card company

If you’ve bought your items on a credit and the supplier goes bust, you can claim a refund from the credit company under Section 75 of the Consumer Credit Act.

You can use our letter template to write to your credit card company with details of your claim.

If you’ve paid by debit card you may be able to claim through the MasterCard and Visa Chargeback scheme, as long as it hasn’t been more than 120 days since paying on your debit card and making your claim.


http://www.which.co.uk/consumer-righ...pany-goes-bust

[peteyt]

1 Get insolvency details

Find out if the business has actually gone bust and get details of the receiver or insolvency practitioner dealing with it.

If the business is a sole trader (such as a tradesperson working on their own) or partnership, find out whether insolvency proceedings have started.

You can do this by checking the insolvency notices section of local newspapers or by checking the Individual Insolvency Register.

If the business is a limited company, you can contact Companies House.


2 Submit a claim

If the business has gone into liquidation, get the name and address of the receiver or insolvency company.

Write to them to register your claim, explaining exactly how much money you’re owed, and what it’s for.

There’s no guarantee you’ll get all or any of your money back because it's likely the company has many debts.

But if you don’t submit a claim then you definitely won’t have any chance of getting your money back. We think it’s worth at least trying.


3 Use your warranty

If the retailer goes bust and the goods are faulty, you may have a manufacturer's or other third party warranty that’s still valid.
Check your documentation to see if this is the case.

If you’ve been supplied with faulty goods and the company is placed into administration but is still trading, you may be able to get a replacement or a refund for your item in the normal way, under the Sale of Goods Act.

If you have a voucher which the shop will not accept you need to make a claim in writing to the administrators.


4 Claim from credit card company

If you’ve bought your items on a credit and the supplier goes bust, you can claim a refund from the credit company under Section 75 of the Consumer Credit Act.

You can use our letter template to write to your credit card company with details of your claim.

If you’ve paid by debit card you may be able to claim through the MasterCard and Visa Chargeback scheme, as long as it hasn’t been more than 120 days since paying on your debit card and making your claim.


http://www.which.co.uk/consumer-righ...pany-goes-bust

I contacted solvency services but from what I can see it looks like while they have claimed to have went into administration they haven't dealt with it the correct ways and instead simply shut down.

I paid for a website design via direct debits and paid off the whole thing in a few instalments the total amount equalling £474. This was agreed via a digital contract which we both signed which I have kept and can easily get statements proving the payments got sent.

The contract was signed 23rd August 2013 - he uploaded a little bit of work onto the site but not a lot and the site got delayed sometimes not hearing from the developer for ages. At one point we seemed to loose all contact with him later eventually being told about the administration stating letters got sent out but we never received one. At this point they where apparently looking for someone to deal with the administration but I heard nothing back about this

[scottish]

Contact your bank and see if there's anything they can do, they may be able to do a visa chargeback (as long as it's within 120 days of you realising there's a fault).

http://www.moneysavingexpert.com/sho...your-purchases

[element]

You need a local accountant for that question. My area of expertise is international business, corporate services and structuring.