It hasn't happened yet but the client has indicated it will be against the limited company, yes. I am meeting with the client tomorrow morning to try and come to a resolution without legal action. We do not accept fault as the technical issues that occurred are variables beyond our control but we would rather it not go to court as it is a very complex matter and could easily go against us.
Thank you AJ.
1. OK. So if the company cannot afford to pay the judgement, we can seek a settlement plan of sorts?
2. No there is no connection between companies other than directors names on them.
3. The directors have not personally guaranteed the company debts and we currently do not have any debts. If we were ordered to pay a substantial amount of money, the company could not afford it but at this time we are not trading knowing we cannot pay any debts as there are none.
Can you please explain what a winding up petition is?
OK, and if that happens, then they can go after the directors personally?