Guarantees

[Tilly2]

If a company goes into liquidation /bankruptcy (I don't know the correct terminology) and the starts up again under another name, do the guarantees, offered by the first company still stand?

[Tilly2]

Any help with this?

[albaqwerty]

I think if the original company went bust and had been a member of a national federation, then the guarantee would stand.

[Tilly2]

Thank you, alba. I hope that's the case.

[factor-fiction]

I'd have thought probably not- unless the new company had agreed to take on liabilities such as this.

[murraymints]

manufacturers guarantee would still be valid..but you would have to deal with them direct !

[KJN]

If the Company goes into liquidation/bankruptcy then the guarantee does not stand , that's why so many small companies close down and open up again under another name with a different director/secretary running it. No guarantee claims to worry about , tax not paid etc etc, find it in the double glazing industry everyday. I think it's three srikes and then you are out of running a business for so any years also.

[FredPuli43]

Agree with murraymints. The new company , whatever it calls itself , is a separate legal person. Therefore it is not liable for the debts and obligations of the old one, though it may have bought the assets of the old one, from the liquidator.

[boxtops]

I agree with the others ^

[Tilly2]

Thanks everyone. I can't do anything about this until tomorrow but it's good to have some ideas.

[tonywiltshire]

I agree with others who state the warranty or guarantee given by the old company is of no value if the company is in liquidation and that company directors can be disqualified under the Company Directors disqualification act 1986.

[nannybooby]

If the guarantee is by a third party ie Comet use Domestic and General I dont see why it wont stand.

[tonywiltshire]

Neither do I nannybooby if given by a company who is not in liquidation or a company who has made arrangements for their guarantee to be honoured it should only be the first company whose guarantee is doubtful.

[Tilly2]

I know for a fact that the director of the first company is now a director of the second company. The second company is in the same line of business too.

[albaqwerty]

If you have any concerns, Tilly, get in touch with your local Trading Standards.

[nannybooby]

somewhere in my brain (dust out the corners ) I thought that a law was passed to stop a co. going broke one day and starting up the next in the same trade, place etc. Think it was all to do with fraudulent trading.

[Tilly2]

Thank you again. A friend of mine also suggested trading standards. I will try them.

[albaqwerty]

Let us know how you get on Tilly, please,
I'd also suggest Companies House, but have no idea if they can do anything at all.

[Tilly2]

I looked the bloke up on the Companies House website just to check he was the director of the new company.

There must be a law against this type of thing, surely. That's why I posted this in law.

[albaqwerty]

meant to say, I agree with Nanny, I too am sure there was a law which is/was supposed to have stopped this sort of thing.
I now have images of you doing a Dom Littlewood and tracking down previous suppliers to get info from them if they've been left in the lurch.

[Tilly2]

As you know alba. I don't give up easily. I've got more hair than him though.
I've been making phone calls and emailing people all day.