Director Liability
Directors only personally liable for VAT tax debts if non-payment is deliberate and the company is insolvent or soon to be insolvent.
Can a Dissolved Company be Held Liable?
Directors of a dissolved company can be appointed directors of other businesses if the dissolution has been carried out in accordance with the Companies Act 2006 legislation.
Debt Settlement and Dissolution
To dissolve a company, you must repay all outstanding debts before the company can be dissolved, including all creditors and any director’s loans.
When a company is dissolved, its debts do not disappear. Creditors can still pursue unpaid debts. If unwilling to negotiate settlement, companies may face increased debt from further collection activities like civil lawsuits. Directors and shareholders may have personal liability depending on the company structure.
Assets Distribution
In most dissolutions, remaining assets are distributed to shareholders after debts are paid from the liquidation proceeds. Business operations may be court-ordered until all claims are resolved. If contracts or business is conducted under the dissolved company’s name, a person can be held personally liable.