if you wind up a company and you cannot pay the debts what are the implications for a limited company.
and also how will it effect the directors and company secretary if you cannot pay the bills
2006-07-19 08:00:44 · 2 answers · asked by dreamdollyday 1 in Business & Finance ➔ Small Business
If you cannot pay debts, you need to go to a bankruptcy court. Most likely, the court will order a sale of the company's assets, with proceeds going to the creditors. After that, the company officially ceases to exist.
The effect on directors and secretary is very simple; they are no longer directors and secretary.
2006-07-19 09:15:11 · answer #1 · answered by NC 7 · 1⤊ 0⤋
the company will go bankrupt & cease to exist. the directors & secretary will depend on wether they had to give personal pledges to secure the firms finances. If this is the case then assuming the firms assets when sold of do not pay off all the depts owing the remainder will be the liabillity of the pledgees I.e direcors etc. hope this helps
2006-07-19 21:27:59 · answer #2 · answered by frankyboy2 2 · 0⤊ 0⤋