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Hi, Thank you for your question and welcome. Limited companies are separate legal entities. They cannot be liable for one another's debts unless they accept liability in writing - i.e by corporate guarantee. The solvent company will not be responsible for insolvent company debts and neither will its directors on the face of it. However to minimise business disruption, I would make sure that you have evidence to show the companies are clearly separate - I.e board minutes etc. I would also make clear and label (and show proof of purchase) which assets belong to which company. When a liquidator is appointed it will likely try and take everything it can lay its hands on. If the companies share an office, are they both liable under the same lease? Kind regards AJ
Thank you --good advice!