5. What happens to directors

When a liquidator is appointed, directors:

  • no longer have control of the company or anything it owns
  • can’t act for or on behalf of the company

If you’re a director you must:

  • give the liquidator any information about the company they ask for
  • hand over the company’s assets, records and paperwork
  • allow the liquidator to interview you, if they ask

You can be banned from being a director for 2 to 15 years or prosecuted if the liquidator decides your conduct was unfit.

Re-using company names
If you were a director of a company in compulsory or creditors’ voluntary liquidation, you’ll be banned for 5 years from forming, managing or promoting any business with the same or similar name to your liquidated company.

The only exceptions to this are where:

  • the business is sold by a licensed insolvency practitioner giving the legally required notice
  • you get the court’s permission to use the name
  • you’re involved with another company (or other type of business) that’s been using the same name as the liquidated company for at least a year

Read the guidance on re-using company names.

Interested in finding out more?

Get in touch with us now to find out how we can help.