How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10532
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

Myself and a friend of mine are thinking of buying up the

Resolved Question:

Hi, myself and a friend of mine are thinking of buying up the stock in a car parts dismantling business. The business is trading at the moment as a limited company by a father and son the son being the director and the father being the owner and employing 5 staff. The owner wants out of the business and the son wants myself and my friend to buy into the stock on a 33 and a third percent giving us all equal shares the sons share being given to him by his father. There will be a new limited company formulated under a new name using the existing phone numbers of the old company and premises to trade.If we decide to carry out this purchase will the new company be liable for any outstanding debts or litigation the previous company or son has and regarding the staff will we be liable for the any accumulated holiday pay/redundancy etc.?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1 .Firstly, the new company would be liable for all accumulated staff entitlements such as holiday pay and redundancy entitlements as the staff would simply have their employment contracts transferred over to the new company without the creation of a redundancy situation. So the new company would be liable for all payments due to staff. Secondly, as regards, ***** ***** debts and litigation of the old company, these would not follow into the new company. Here it is important to have a winding up of the old company and the payment of all liabilities so that all liabilities are contained in the old company and don't follow on into the new company. Otherwise something could arise which would adversely affect the profitability of the new company
Expert:  Buachaill replied 1 year ago.
2. I would advise you to get the help of a solicitor or accountant to handle the liquidation of the old company and the formation of the new company and to deal with any liability issues. This ensures the new business starts off on a firm footing and nothing comes back to bite you all from the old company.
Buachaill and 2 other Law Specialists are ready to help you

Related Law Questions