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Alex J.
Alex J., Solicitor
Category: Bankruptcy Law
Satisfied Customers: 3772
Experience:  Bankruptcy, liquidations, administrations, pre pack sales, re use of company names and director duties and offences.
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Hi I am a co director of a company that went into voluntary

Resolved Question:

Hi I am a co director of a company that went into voluntary liquidation. At present the status of the company is LIQUIDATION. It is my understanding that at present I would not be able to be associated with any company name similar to that of the former company. My question is that whilst I have not been disqualified from being a director once the company is dissolved can I then trade using a similar company name?
regards
chris
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 3 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
The relevant legislation for this is S.216 of the Insolvency Act 1986:
216 Restriction on re-use of company names.
(3)Except with leave of the court or in such circumstances as may be prescribed, a person to whom this section applies shall not at any time in the period of 5 years beginning with the day on which the liquidating company went into liquidation—
(a)be a director of any other company that is known by a prohibited name, or
(b)in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of any such company, or
(c)in any way, whether directly or indirectly, be concerned or take part in the carrying on of a business carried on (otherwise than by a company) under a prohibited name.
The above are the restrictions in relation to the re use of a prohibited name. The time period is five years from the date of liquidation - it does not matter if the company is subsequently dissolved. If the company is dissolved you are less likely to face a civil claim for its debts, but this would not extinguish the potential criminal liability under S.216.
This does not prohibit you from owning shares in the company but you would need someone entirely different to form and be the manager and director of new co.
The alternative is you could apply to court for permission to re use the name. Such an application costs about £2-3k.
The prohibition also relates to names that are similar.
Of course if you are disqualified as a director would be unlikely to approve any application.
Kind regards
AJ
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