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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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How long after compulsory liquidation, in time, can a Director

Resolved Question:

How long after compulsory liquidation, in time, can a Director be pursued for wrongful trading?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.
-Could you explain your situation a little more?
Customer: replied 2 years ago.
The company to which I was a Director went into administration on October 4th 2011.In August 2012 the administrators liquidated the company.Today, December 2015, I have been informed by a solicitor acting on their behalf, that they are going to pursue a 'wrongful trading' case against me.I do not understand why and how but also, why it has taken over 4 years since administration and 3 years after liquidation, that I have been informed of this for the very first time?
Expert:  Ash replied 2 years ago.
On whats basis please?
Customer: replied 2 years ago.
As of yet I have not been informed but believe it to be this.....Our accountant advised us to reduce payments to HMRC for cash-flow reasons because he believed he would obtain a 'time to pay' deal.HMRC eventually refused every single offer we made over a 5 month period, May to September 2011 and we were then, via solicitors, attempting to take them to court for the 'right to pay' what we actually owed. At the last minute our funders, Lloyds Bank, opted to put us in administration, October 4th 2011, to protect their own funds.
From that point on we have done nothing but pay. The administrators £200k, Lloyds Bank £110k, Solicitors £50k and were obviously unable to collect our full book debt due to administration. With all that in mind, we could have paid HMRC in full without going into administration, so do not see how we can be accused of 'wrongful trading' but my original point to this is 'Is there not a time frame for all of this as 4 years since administration and 3 years since liquidation' seems remarkably long for this sort of action surely?
Expert:  Ash replied 2 years ago.
Sadly there is no time limit. Because it is either way, ie you can go to the Crown Court this means there is simply no time limit at all.
Its not like the USA where there is a statute of limitations
I am sorry if this not the answer you want and certainly not the one I want to give you, as I have a duty to be honest.
Can I clarify anything for you about this today please?
Alex
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