Company Dissolved - Why?

[DarceyK123]

Had a garden designer at my house today, he seemed to really know his stuff and he could do exactly what i wanted.

But its a lot of money so decided to do my due diligence only to find hus Company was 'Dissolved' last month.

Why would you do this and carry on working as normal?

[JJ109]

You need to ask him - there could be a number of reasons

eg 1 The share holders had a great fall out. Often the case if the shareholders are husband and wife and they separate. Husband then works for himself rather than the company which is dissolved
eg 2 The company was making insufficient profit and there were tax advantages for returning to being "self-employed"
eg 3 The company was in financial difficulties and the garden designer wanted a fresh start away from the burdrn of the company's debts.

[Buenchico]

There are all sorts of reasons. Here's just one of them . . .

Your guy might have been working (in his capacity of director of his limited company) for someone who required a LOT of work done. As an example, let's say that it was a garden centre that wanted their extensive grounds landscaped in order to show off their products at their very best. So the landscaping business spends a fortune on hiring diggers, employing sub-contractors, etc, etc, to completely change the look of the site, knowing that the business will get its money back when the garden centre settles the bill. Then the garden centre goes bust. As a result of that, your guy's company is then also forced into bankruptcy, resulting in its dissolution.

So your guy can no longer trade as a limited company (unless, of course, he sets up a new one) but he's still perfectly capable of working as a sole trader (and quite possibly using a business name remarkably similar to his former one).

As I've said, that's just one of many possibilities but such things definitely do happen. i.e. companies go bust, and get dissolved, as part of a domino effect from one or more other companies going bust, even though they've been trading perfectly ethically and soundly up until then.

[Buenchico]

DarceyK123:
You've obviously looked at the Companies House website. I suggest going back to it to click on the 'People' tab for the dissolved business and then on the name of the relevant director. That will show whether he is, or has been, the director of any other companies.

If he's been the director of a dozen other landscaping firms, all of which have been dissolved, I'd be very wary of getting involved with him. However if he's just set up a new company (without a string of failed ones behind him), he might simply be trying to recover from a problem similar to the one I've suggested above.

[DarceyK123]

Thank you, but it does say on there that a Dissolved Company is no longer able to trade.

[Buenchico]

If Fred Bloggs is running Super Beauty Landscaping Ltd, which is then dissolved, he can no longer operate that limited company because it no longer exists.

However he can still carry on working as a landscape gardener on a sole trader basis, including as 'Fred Bloggs T/A Super Beauty Landscaping' if he chooses to do so.

[JJ109]

Is his estimate given by the limited company, a different limited company or in his own name?

[William51]

I agree with JJ. He may be working on a contract just with you. If he produces a valid invoice for the work in his own name it is ok.

[William51]

Anyway, make sure you talk to him about your concerns before agreeing any work.

[DarceyK123]

He sent me a quote by email which just said ABC landscapes.

I got him off the Checkatrade website so wonder if they are aware.

Decided to go with someone else who checks out well and has been recommended by a friend, but thanks all.