Okay, here's the situation, I worked for a company that went out of business 10/06, since then new owners bought the company (the assests only) and renamed it something similar to the old company that went out of business. Now i'm hearing the company that went out of business had past due invoices in thousands of dollars that has not been paid. Now a company has served me some papers as an individual defendant to apprear in court. I was the purchasing manager for the company that went belly up and served only as an agent for buying / contracting services for the company. Can the companies that my old company owes money to go after me for payment of past due accounts? Why am I being served papers and named as an individual defendant?
2007-08-09 02:56:56 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
There is something in the Companies Act that says that if you knew the co. couldn't pay up, then it shouldn't be ordering goods. If it does, then the person who did the ordering can be personally liable, but he's usually the director. If you're just an employee, acting under instructions, you should say so in your defence. You definitely need a lawyer. It looks like the creditors are suing as many people as possible in trying to get their money back. All the best to you.
2007-08-10 01:55:55 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Obviously you should talk to a lawyer.
I'm not sure how you could buy only a company's assets and not its liabilities as well. Maybe they're just trying to figure out what the liabilities are; maybe the old owners lied about it.
2007-08-09 10:05:59 · answer #2 · answered by Dust ~ 2 · 0⤊ 1⤋