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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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To Whom It May Concern: RE: Debt Recovery: Unpaid Waged

Resolved Question:

To Whom It May Concern:

RE: Debt Recovery: Unpaid Waged by Ex-Employer

I had a trial date scheduled this April 2014 with the County Court where I hoped to find resolution for a case which has dragged on since 2009: attempting to get the company concerned to honour unpaid waged owed to myself in excess of £5,000.00.

However, I was informed only yesterday that the company has been Dissolved as of 1 April 2014 for ‘non-compliance’ – Companies House detailing that they were “not notified an administrators appointment prior to dissolution” and having no further information to provide me with beyond stating that “Companies House instigated proceedings as the company did not keep up to date with its filing requirements”.

I am aware that the company is still trading, but have dropped the ‘Ltd.’ from their title. From this I can only surmise they have set up as a Small Trader in order to ‘keep up appearances’ and maintain their cliental base, while allowing the Ltd. company to officially ‘die-off’ – a convenient situation which would (from what I have research so far) allow them to avoid payment of my owed wages.

While I have been informed that I can no longer go to Court owing to the fact the company concerned does not officially exist (and therefore I have no claim), I wished to do further research to see if there are any avenues left to pursue. For instance, I wondered if it might be possible to employ a Statutory Demand of some form, in light of the fact the company directors are still trading and that they are clearly evading payments due via a loop-hole in the system.

[NB: This I mention in particular after reading that the Directors of limited companies may still be liable if: “the company goes into formal insolvency proceedings and the director is found guilty of wrongful trading, fraudulent trading, misfeasance or other offences”… “’Wrongful trading’ means continuing to trade when the company is insolvent, resulting in the company’s debts increasing”… “Fraudulent trading means deliberately trying to defraud creditors, or intestinally being part of a fraud taking place.” – Reff: http://www.bdl.org.uk/images/10_EW_BDL_Limited%20Companies.pdf .]

I would welcome any information or advice you may have at your disposal in regard to this matter.

Many thanks for your time. I look forward to your reply.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : You can sue the Company as you are doing but then ask the court to pierce the corporate veil.
Alex Watts : This means that if the court agrees then you can sue the directors personally.
Alex Watts : But you need to do this in the current action and not start a new one.
Alex Watts : So continue with your claim and ask the court to pierce the corporate veil.
Alex Watts : Can I clarify anything for you about this today please?
Customer: Many thanks.
Customer: How do I 'pierce the corporate veil'? Is there a specific court form to complete?
Customer: I looked here — www.justice.gov.uk — but cou
Customer: couldn't see anything, but then I was searching blind.
Customer: Would I go to court on the already-set April trial date and get that judge to make an order in their absence? If so, what proof would I need? Or do I withdraw and pursue it another way?
Customer: Do I need to 'get an order to attend court for questioning into his financials' (something I read on an advice board) as proof?
Alex Watts : You have issued the claim I assume. You just need to make an application and ask the court.
Alex Watts : You need some evidence of fraud.
Alex Watts : Clearly a conviction would help, but some evidence would assist you persuading a judge
Alex Watts : Does that help?
Customer: I am confused - I am the claimant if that's what you mean.
Alex Watts :

Yes I understand. You need to make an application to the Court to pierce the corporate veil to go after the Director(s)

Alex Watts :

Does that clarify for you?

Customer: I also don't know what you mean by 'make an application' – would I write to the judge presiding over ,y current case, or is there a formal procedure, or a particular form to use? And should I inform the (as it were) Defendants solicitors? (I know they are owed too)
Customer: Sorry I think I am experiencing delays with the nine chat facility.
Alex Watts :

You would need to make an application on Form N244

Alex Watts :

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n244-eng.pdf

Alex Watts :

The Court would then consider this. It would also be sent to the Defendant.

Customer:

Details: As the defendant no longer exists officially, would I put in the company details or the names of the directors? (Same for the claim number - do I keep the old one?)

Customer:

Point 3: "What order are you asking the court to make and why?" - Do I answer "an application to the Court to pierce the corporate veil"

Customer:

Point 4: “Have you attached a draft of the order you are applying for?” – What does this mean and do I need to prepare this to strengthen the case?


 


Point 5: “How do you want to have this application dealt with?” – What does this mean?


 


Point 8: “What level of Judge does your hearing need?” – Is the answer just ‘County Court’?


 


Point 9: “Who should be served with this application?” – Would I list the company and the individual directors and their solicitor to cover all bases?


 


Point 10: “What information will you be relying on, in support of your application?” – I have my original court bundle, and can do a search on Companies House for the directors histories (which I believe will show they have done this before), and my own Witness Statement. Would I benefit from anything else (another WS by another party perhaps?) or are any of these inappropriate to be included? Also, what is a ‘Statement of Case’ and would this be better than a Witness Statement?


 


Apparently there are notes to help me with this form but I cannot find them on the website (actually I cannot find the form at all using their search facility and do not understand why it comes up with “no results” when I type in N244?!)


 


Mant thanks.

Alex Watts :

You said you had a trial date. Therefore you just make the application in the current proceedings.

Alex Watts :

Yes that is what you put on point 3.

Alex Watts :

Can I clarify anything else?

Customer:

Just the above realting to points 4-10 (did they come up for you?) and if you know where I might find the guidence notes.

Alex Watts :

Sadly not. However your main question was what can you do.

Alex Watts :

You are more than welcome to ask me for help to complete the form, but might I invite you to ask a new question for that?

Alex Watts :

Please put for attention Alex W and I will be pleased to assist.

Ash and other Law Specialists are ready to help you