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[ian123]

Can I stop a company going into voluntary liquidation to avoid paying me my profit share - and a breach of contract case in progress against them.

[Derek Cooper]

Ian,

thanks for your question.

If you are owed profit share from the company I assume that you are a shareholder. If you hold more than 25% of the company shares then you could vote against the resolution to wind up the business. Having said that, even if you do this if the company is insolvent the directors will normally request a winding up petition from the court to protect their position.

If you own less than 25% then there is nothing you can really do to stop the business going into liquidation.

I assume that the company owes a number of different creditors money as it is rarely only one, this therefore means the process will be a creditors voluntary liquidation. As a creditor you will have the right to vote on the appointment of the liquidator, who will investigate the conduct of the directors.

The liquidator will also have to review the case you have brought against the company for breach of contract and see what liability the directors have for this.

Hope this helps. Do not hesitate to contact us to discuss further.