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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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If a company is in liquidation doe sit mean the the director

Resolved Question:

If a company is in liquidation doe sit mean the the director is bankrupted?
How is it sometimes a company is is liquidation but the director still remains as director and the company seems to be healthy in away that the assets are more the debts?
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you.
Alex Watts : No the director is not bankrupt but the company is.
Alex Watts : the director could be disqualified as being a director. But just because the company is bankrupt does not mean the director is.
Alex Watts : Can I clarify anything for you about this today please?
Customer:

I find some directors still remaining as director while the company is in liquidation. How is that possible?

Alex Watts : Because they still run the company but the liquidator is in control.
Alex Watts : But they can still run it if allowed to by the liquidator.
Alex Watts : does that clarify?
Customer:

Also some companies that are in liquidation seem to be healthy companies meaning the assets are higher than the debts. Why these companies are taken over by the liquidators or why the directors entered into voluntary insolvency? are these directors risky?

Alex Watts :

They may be risky but that is for Companies House to disqualify them.

Alex Watts :

Does that clarify?

Customer:

Yes thank you

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