Can A Director Be Prosecuted When Company Is In Recievership

[Pj270265]

Can a director be prosecuted when the company is in Recievership

[Old_Geezer]

Should be in legal really. No expert, but if wrong has been done surely the state of their company is not relevant ?

[ummmm]

Yes...depending on why it's in receivership and if any fault is found.

[chrissa1]

If you’re looking to be paid out as a creditor and want to sue for your money, you will have to wait in line and attend a creditors meeting to see what assets are left.

The company is in the hands of the Official Receiver.

[Buenchico]

Company directors can be prosecuted for offences committed in the course of those directorships even after the company ceases to exist. That's because where, say, a company has been trading fraudulently, it might not be until some time after the company folds that the fraud eventually comes to light.

However most of the hundred-odd offences for which directors can be prosecuted (such as failing to complete and submit certain paperwork) are 'summary only', meaning that they can only be dealt with in a magistrate's court and not in the Crown court. For such offences 'information must be laid' before a court within 6 months of the offence taking place or no prosecution can occur. There's no such time limit though on 'indictable only' or 'either way' offences, such as those dealt with by the Fraud Act 2006.