When permission to reuse the name has been granted by the court.The common situation here is a group of companies with similar names. Where the new company had already been established with the same or similar name and has traded for at least 12 months prior to the old company being liquidated. Note that the director canât value and sell the assets (even at market value) to themselves pre-liquidation â they must be sold by the liquidator, who is a licensed insolvency practitioner. This exception requires a formal notice be sent to all creditors of the old company and advertised in The London Gazette within 28 days of liquidation. If the old company is liquidated and the assets are sold by a liquidator to the new company.However, there are some useful exceptions to these rules: The director, shadow director or manager of the new company is personally liable for any new company debts. The other consequences are that any new company created with the same or similar name does not have limited liability. The director or shadow director may also be struck-off for up to 15 years. As a company liquidator, if I discover this has happened, I have a duty to report this to the Insolvency Service, and they can prosecute. That also includes a name it traded with.Ī breach of this rule is a criminal offence and is punishable by a fine, imprisonment, or both. When a company enters insolvent liquidation, a director or shadow director (or someone involved in the management of the company) canât set up another company and use the same or a similar name for a period of five years from the date of liquidation. Is a company name always prohibited after liquidation? Is a company name always prohibited after liquidation? Created date Publication date ĭavid Kirk outlines what you can and canât do with an insolvent company name, and why directors should exercise caution.ĭavid Kirk outlines what you can and canât do with an insolvent company name.
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