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[RichardB]

A company that until recently I was a Director of has gone into liquidation. In January I left and set up a limited company with the same name as a trading name of the previous company. Now that the original company has gone into liquidation, where do I stand in respect of my new company?

[Graham Wilson]

Hello Richard and welcome

This is really a question of whether the trading name of the old company has any perceived value. If the origional company was doing much business through its trading name, then the liquidator may take the view that your new business benefited from an element of goodwill.

If that were the case, the liquidator may decide to approach you for payment for the good will you gained as this was an asset of the old business. However, if there was little or no trade through the trading name. I do not think you have much to worry about.

[RichardB]

Thank you for your response. The reason I have concerns is that I have had a letter from the Liquidator quoting provisions of section 216 and 217 of the Insolvency At 1986 which states that I will be prohibited from using any name by which the Company was known, including trading names, or a name which is so similar as to suggest an association with that company.

[Derek Cooper]

Hello Richard

If you are a director of one company and then leave to set up a new business, you have to be very careful about the "look and feel" of the new company. If you set up a new business which is basically the same as the old one, then this could be seen as stealing the assets or goodwill of the old business.

It is possible to set up a Phoenix company but you would need to buy the assets and good will (for example the name) before this can happen. For more information about phoenixing see http://www.company-debt.co.uk/pre-pack- ... ation.html

I suggest you get specialist advice from a company insolvency expert who will be able to tell you where you stand and the best way forward.