Company in limbo status - how can I get my dues?

drum_3

Hi

Okay, I'll try and make this as short as possible.

June this year, my employer has it's overdraft withdrawn and is told that the company is effectively insolvent.

All staff made redundant without notice and no redundancy payments, due salary,or unpaid holiday was paid.

Employee gave me the name of insolvency practitioner to give on Form RP1.

Completed and submitted form. Returned to me by said insolvency firm stating that they had not in fact been appointed by my employer.

Employer states he cannot afford to pay the costs involved in voluntary liquidation. However to date still no creditor has applied for a compulsory liquidation via a winding up petition. Company is in limbo land.

I now have an employment tribunal decision in my favour awarding redundancy, unpaid salary, unpaid leave and an award for breach of contract.

As it stands now I can get the redundancy payment but nothing else until the company is made legally insolvent unless I sue the company (pointless, it has no money)

I can't afford to petition to wind it up.

So..... 2 questions. What will eventually happen to this company and am I ever likely to see my money!!!?

Any advice/help greatly apprciated.

Cheers

Debt_Free_Chick

Did the Tribunal not give you the Judgement booklet

See page 9/10. You need to contact your local County Court to get the judgement enforced.

Debt_Free_Chick

SueSueSue wrote: »

If the company is insolvent its unlikely that a CCJ will do much good anyway

But it may be a priority creditor and/or may then qualify for payment from NI fund

I don't know, but there is nothing to lose, is there?

drum_3

SueSueSue wrote: »

It sounds to me that the employer is at it and just doesnt fancy paying people knowing he wont need them any more.

You need to petition if you want to see the money but he seems to know what he is doing and I doubt the money exists to be had.

Hi SueSueSue

Pretty apt nick for my circumstances!

I don't think this was done deliberately except for the fact that he's not prepared to pay to voluntarily liquidate the company. As regards the company, there is no money to be had.

@debtfreechick - Yes, I have the booklet. As it stands, I can sue but get no money or I can pay to wind up the company which I guess will cost more than I recover when successful.

Main question is - what happens to this company? Do VAT, Tax, Paye, Companies House (if applicable to any of the above) wind it up or does it just get dissolved and no liquidator get appointed?

That being the case, I guess I'm stuffed.

Which leads me to another thought!!!

Bank pulls plug - writes off debt - no further cost involved - employee stuffed.

How about... bank pulls plug - mandatory for bank as creditor to petition to wind up company. Bingo....employee no longer stuffed.

Gets his/her dues without all this hassle.

As always seems the case currently, bank wins/can't be bothered to pursue and 'little man' loses money.

Thoughts?

Cheers

londondulwich

Applying for your redundancy payment from the National Insurance fund now will not stop you from being able to pursue the remaining debts relating to notice, holiday pay and unpaid wages.

(You should also have added a claim for unfair dismissal and loss of statutory rights).

You may consider getting the £1-£1,200 to wind the company up by spreading the cost amongst all the employees who are owed money.

The downside of taking responsibility for the proceedings is that other creditors might jump on the bandwagon, the suppliers, the landlord or even HMRC, if VAT, NI etc... is owed, and they do not have to contribute to the receiver's costs.

This would push the insolvency bill up, but not by very much, and if you are not expecting the company to have any hidden assets, then it wont effect any payout.

If you wish to discuss this with your ex-colleagues the next move is to prevent Companies House from striking your employer's business off the register or from allowing the employer to dissolve the company.

You can check the status of the company at

http://www.companieshouse.gov.uk/

outofworksch

Dont know if it helps at all but my old company was shown as proposal to strike off when I checked on Companies House web site.

I emailed them sayng, I was still trying to get my redundancy money from the company,they noted my objection and agreed to hold off striking off the company for 6months.

I have since heard the Redundancy payment office have accepted my RP1 form which I sent together with my employment tribunal judgement and will pay me if I dont hear from my old company within 14 days.

zzzLazyDaisy

If this company is genuinely insolvent, the chances are that it will eventually be wound up for non-payment of VAT and/or corporation tax. It may even be the case that the directors are well aware of this, hence the decision not to petition for voluntary liquidation.

Keep checking the status of the company and be ready to pursue the remainder of your claim once they have officially gone bump.

drum_3

londondulwich wrote: »

Applying for your redundancy payment from the National Insurance fund now will not stop you from being able to pursue the remaining debts relating to notice, holiday pay and unpaid wages.

(You should also have added a claim for unfair dismissal and loss of statutory rights).

You may consider getting the £1-£1,200 to wind the company up by spreading the cost amongst all the employees who are owed money.

The downside of taking responsibility for the proceedings is that other creditors might jump on the bandwagon, the suppliers, the landlord or even HMRC, if VAT, NI etc... is owed, and they do not have to contribute to the receiver's costs.

This would push the insolvency bill up, but not by very much, and if you are not expecting the company to have any hidden assets, then it wont effect any payout.

If you wish to discuss this with your ex-colleagues the next move is to prevent Companies House from striking your employer's business off the register or from allowing the employer to dissolve the company.

You can check the status of the company at

http://www.companieshouse.gov.uk/

Thanks for that. I don't think pursuing the winding-up myself is the way I want to go. Only one other guy to really share the costs with. I note your caution as to prevent the company from being struck off. How much notice would I get on that by checking on Companies House website?

outofworksch wrote: »

Dont know if it helps at all but my old company was shown as proposal to strike off when I checked on Companies House web site.

I emailed them sayng, I was still trying to get my redundancy money from the company,they noted my objection and agreed to hold off striking off the company for 6months.

I have since heard the Redundancy payment office have accepted my RP1 form which I sent together with my employment tribunal judgement and will pay me if I dont hear from my old company within 14 days.

Thank you. Useful info.

zzzLazyDaisy wrote: »

If this company is genuinely insolvent, the chances are that it will eventually be wound up for non-payment of VAT and/or corporation tax. It may even be the case that the directors are well aware of this, hence the decision not to petition for voluntary liquidation.

Keep checking the status of the company and be ready to pursue the remainder of your claim once they have officially gone bump.

Thank you also. That was what I was kind of hoping for. Would it be obligatory for a Goverment body to apply to wind it up if is was owed money?

zzzLazyDaisy

drum wrote: »

Thank you also. That was what I was kind of hoping for. Would it be obligatory for a Goverment body to apply to wind it up if is was owed money?

Obligatory as in some law or regulation? Not as far as I know, but I could be wrong. You may get the answer to that question over on the tax board though.

However I can tell you, from professional experience, that the authorities are pretty ruthless and will normally wind up a company for unpaid tax or vat - regardless of whether there is any money in the company or not.

drum_3

zzzLazyDaisy wrote: »

Obligatory as in some law or regulation? Not as far as I know, but I could be wrong. You may get the answer to that question over on the tax board though.

However I can tell you, from professional experience, that the authorities are pretty ruthless and will normally wind up a company for unpaid tax or vat - regardless of whether there is any money in the company or not.

Thanks again. I think that is looking like my best hope. I'll let you know the outcome (if any)

Cheers