I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up a
new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?

On Wed, 30 Dec 2009 01:30:27 -0000, "John Smith"
wrote:

I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up a
new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?

I'm almost certain there are ways of doing just that. That's what
you'd pay an accountant for.

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that should a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up
a new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to stop
it.

....like the MP's claiming for mortgages when they don't have one.

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that should
a company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the old
company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !

"john" wrote in message
o.uk...

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that should
a company go bust owing a significant sum, in most cases the company
owner will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the
old company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !



and the puncher will be subjected to the GBH laws...

"Tiddy Ogg" wrote in message
...
On Wed, 30 Dec 2009 01:30:27 -0000, "John Smith"
wrote:

I know that one of the basic premises of a limited company is that should
a
company go bust owing a significant sum, in most cases the company owner
will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting up
a
new company with a new registration, doing the same business but simply
transferring all of the assets to the new company, leaving the old company
with just the debts and closing it down?

I'm almost certain there are ways of doing just that. That's what
you'd pay an accountant for.

I see, so probability of getting back wages even after going to court is?

On Wed, 30 Dec 2009 15:17:57 -0000, "In400metreskeepright"
wrote:


"john" wrote in message
news:k5adnTZyTpf28abWnZ2dnUVZ7q6dnZ2d@brightview. co.uk...

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that should
a company go bust owing a significant sum, in most cases the company
owner will not be personally liable for its debts.

However, what is to stop a company with debts but also assets, starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the
old company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !



and the puncher will be subjected to the GBH laws...

I very much doubt that a punch in the face would be classed as GBH.

"Peter Saxton" wrote in message
news
On Wed, 30 Dec 2009 15:17:57 -0000, "In400metreskeepright"
wrote:


"john" wrote in message
news:k5adnTZyTpf28abWnZ2dnUVZ7q6dnZ2d@brightview .co.uk...

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that
should
a company go bust owing a significant sum, in most cases the company
owner will not be personally liable for its debts.

However, what is to stop a company with debts but also assets,
starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the
old company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !



and the puncher will be subjected to the GBH laws...

I very much doubt that a punch in the face would be classed as GBH.

oh no, go down to your local nick and punch the duty sergeant...

On Thu, 31 Dec 2009 05:58:26 -0000, "In400metreskeepright"
wrote:


"Peter Saxton" wrote in message
news
On Wed, 30 Dec 2009 15:17:57 -0000, "In400metreskeepright"
wrote:


"john" wrote in message
news:k5adnTZyTpf28abWnZ2dnUVZ7q6dnZ2d@brightvie w.co.uk...

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that
should
a company go bust owing a significant sum, in most cases the company
owner will not be personally liable for its debts.

However, what is to stop a company with debts but also assets,
starting
up a new company with a new registration, doing the same business but
simply transferring all of the assets to the new company, leaving the
old company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !



and the puncher will be subjected to the GBH laws...

I very much doubt that a punch in the face would be classed as GBH.

oh no, go down to your local nick and punch the duty sergeant...

Sorry, I'm dealing with reality.

You obviously don't know the difference between GBH and assault.

oh dear a smart arse...


"Peter Saxton" wrote in message
...
On Thu, 31 Dec 2009 05:58:26 -0000, "In400metreskeepright"
wrote:


"Peter Saxton" wrote in message
news
On Wed, 30 Dec 2009 15:17:57 -0000, "In400metreskeepright"
wrote:


"john" wrote in message
news:k5adnTZyTpf28abWnZ2dnUVZ7q6dnZ2d@brightvi ew.co.uk...

"In400metreskeepright" wrote in message
...

"John Smith" wrote in message
...
I know that one of the basic premises of a limited company is that
should
a company go bust owing a significant sum, in most cases the company
owner will not be personally liable for its debts.

However, what is to stop a company with debts but also assets,
starting
up a new company with a new registration, doing the same business
but
simply transferring all of the assets to the new company, leaving
the
old company with just the debts and closing it down?


ahh such a moral dilemma, it can be done, is done and there's no law
to
stop it.

...like the MP's claiming for mortgages when they don't have one.
Getting a 'punch in the face' by your creditors !



and the puncher will be subjected to the GBH laws...

I very much doubt that a punch in the face would be classed as GBH.

oh no, go down to your local nick and punch the duty sergeant...

Sorry, I'm dealing with reality.

You obviously don't know the difference between GBH and assault.