Shortest life of a limited company?

lynyrd wrote:
what would be the fastest ever period going from starting a ltd company to shutting the doors?

last year 6 weeks, now another it seems?…..isnt it time the law got involved in this scam?

what actually constitutes “obtaining goods or services by deception”?

and if my booking form doesnt state “ltd” just who was I dealing with?…

This is exactly why recently formed limited companies, or in fact most limited companies now, are a bad credit risk. That’s why the banks demand directors’ guarantees before lending them money.

The Companies Act contains all sorts of get out clauses so that limited companies can act in a shonky way and get away with it – but if they get the basics wrong then the shield of limited liability is taken away from them.

If the booking form doesn’t contain their limited company details then they’re in breach of the Companies Act – which means that the directors should be held personably liable for any losses you suffer because of their breach.

Posted under Courier Financial Issues, Late Payment, Legal Issues

Posted by Alec at 11:01 am, April 22, 2008

1 Comment so far

  1. Alec added on  April 22nd, 2008 at 11:24

    Andy wrote:
    So is it really that easy for lets say me to go ltd, run up huge debts and simply go bust?

    There must be some kind of law that prevents this?

    No the law actually specifically allows it – that’s what limited liability is all about. The new Companies Act actually makes it easier than ever to fuck everyone over. It’s meant to encourage an entrepreneurial led economy what it actually does is allow bandits to prosper.

    It’s just ‘Business’ though.

    Steve, I’ve given up asking CX to ensure that the name of the actual legal entity appears in the directory and on booking confirmations. The Companies Act and the Business Names Act require that all ‘order forms’ contain the full details of the actual legal entity behind the business. Most CX Order confirmations don’t comply so the companies are breaking the law.

    If you didn’t know that you were dealing with a limited company because they were hiding the fact then the directors are personally liable for any losses.

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