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Hello, Thank you for your question and welcome. My name is ***** ***** I will assist you. I am sorry to hear of this trouble. When you say they have been Wrongfully trading - do mean trading while willing ignoring or turning a blind eye the fact that the company is insolvent? Thank you kindly for visiting Just Answer today. Kind regards AJ
Thank you. You can report this to the Registrar - I doubt they will take any action until the company goes into an insolvency procedure and the liquidator could the directors personally liable. At that point they may be subject to Director Disqualification orders. Does the company have the ability to pay this debt? Have the directors benefited personally from the company funds? Kind regards AJ
Thank you. The employees won’t be liable for the debt or national insurance paid by PAYE. What else would the employee want to sue for? Loss of jobs etc? Is the company doing to go into liquidation? Kind regards AJ
Thank you. If the company goes insolvent the directors will be held to account and could be subject to a directors disqualification order. In relation to loss of employment and earnings - there is no precedent for this - if directors were liable to the employees personally for an insolvency - it would be conceptually difficult to have a limited company (as there would be no limitation of liability). There are directors duties under the Companies Act 2006 - s172 - that require directors to act in the best interests of the employees - proving a breach of this would be an expensive and complex litigation. If the CEO does not want the company to be liquidated - the debts will have to be paid. I do hope this has been helpful so far and look forward to hearing from you. Kind regards AJ.
Thank you. I wish you the best of luck. If I can assist any further please do not hesitate to contact me. Kind regards AJ
Thank you. They would be entitled to redundancy this would be paid by National Insurance - if the company is insolvent. Any enhanced redundancy - would be as an unsecured creditor. Kind regards AJ