CCJ against previous employer - now applying to be struck off Companies House

jojooneill

Hi,

Any advice would be greatly appreciated. My fiance worked for an Electrical Company (who have changed their name approximately 5 times in three years, all with the same Directors). We took this company to an Employment Tribunal (they didn't turn up) and a CCJ was placed on the company ordering payment on a specified date in April. Surprisingly, they didn't pay by the specified date.
I've just been informed via the Companies House monitoring system that this company has applied to be struck off the CH register. I have to send all legal documents to CH to suspend this order (which I will do)

Legally, what routes can we take to reclaim the money, as ordered by the court, given the current situation of the company?

Thanks in advance for your help!

SueC_2

What exactly do you mean when you say they have applied to be 'struck off'?

If the company has gone into Administration/Liquidation there is precious little you can do other than ensure you are on the list of creditors, and wait, probably years, to receive a payout of, generally, a few pence for every pound you are owed.

If your fiance was still employed at the time of the company going into Administration then he will at least be treated as a 'preferred creditor' which means he has slightly more chance of getting some money than all of the other creditors.

But that is, of course, dependent on there being some money there to begin with. If the company have wound up and started again 5 times in the last 3 years, I'd say they are probably quite adept at making sure the funds move with them when they want to start again. Sad, but true, and in most cases, legal.

Good luck.

jojooneill

Hi,

Apologies for my late response - your reply is much appreciated. The company concerned have applied to Companies House to be wound up/struck off/dissolved for a specified reason. I contacted Companies House who have placed this order on hold due to the company having an employment tribunal judgement against them. I haven't been given any further details on what to do next but I will contact Companies House for an update.
This company currently has another, very similar named company, on the register and Companies House are taking legal action due to non-filing of accounts. Unfortunately it does seem that the company, with exactly the same directors, staff, tools and name, CAN do this. I'm determined to fight this one!
Many thanks for your help.

jojooneill

I've just received information from Companies House to say my application to suspend the striking off action has been successful. Unfortunately the company concerned has not filed any accounts since its incorporation in July 2008 (accounts due April 2010, now overdue) next accounts due in August 2011. Surely Companies House should have taken action before now?
If the company never file their accounts then how will I, or HMRC/Courts/Companies House see that they have (or do not have) money available to pay back what is legally owed?

Any help would be much appreciated as it is an extremely complex area of the law!

Tiddlywinks

Where is the principal place of business (PPOB) and where is the registered office?

If the PPOB is still open then you could send in a bailiff to enforce the debt - is there likely to be equipment there to remove for sale?

Also, report the company to:

http://www.insolvency.gov.uk/cib/index.htm

It won't help you get your money but it may help prevent the directors from forming more companies with new 'victims'.

ILW

Sadly limited liability means this happens all the time, and the creditors just get shafted. It is very unlikely that the company has any assets any more.

jojooneill

Hi,

Many thanks for your email!
I have the registered address and am aware they are still trading (despite notices to the contrary). They are electrical contractors so are likely to have tools, vans etc. I have booklets from the Courts to gain help applying for enforcement of the judgment. One option is the County Court, other is the High Court. However, given the company is more than likely to say it has £5 of assets (which it has done previously) I can't help but think I will be throwing money after a lost cause. I will also report the company - many thanks for the link!
I have a degree in Law yet am still struggling with the complexities of the case. I don't know how they expect people without a legal background to do this!

All the best

donquine

If the directors apply for their company to be struck off, rather than liquidated, it's a much cheaper way for them to kill off the company. However, they are not allowed to strike off the company unless they pay all their creditors. That's why your application to overturn the striking off was successful.

Liquidation costs a fair bit and takes time to complete, so it's understandable why they wanted to avoid that route. Given that they can't strike off the company or make it dormant, if the directors were going to comply with their legal duties, they would either settle their debts so they could strike off the company (ie pay you) or get the company liquidated (you might not get all or part of your money back, but the company would incur lots of costs). As it stands, the company is still trading and racking up all kinds of filing requirements, which as it isn't meeting, will result in all kinds of penalties.

As a creditor, you can't force the company into liquidation - all you can do is force it into receivership, but it's a complicated and expensive process and will not be worth doing if you don't think the company has any assets that could be realised to get your cash back. In fact, even if the company does still have assets, unless you're owed a substantial amount of money, it's probably still not worth considering. You have to factor in your legal costs when deciding whether an option is worth pursuing.

If the new company is a phoenix company, it might not be the case that the directors have legally done anything wrong in setting it up, but if they've missed a trick in the process, you might be able to come after that company. You would need to seek professional advice, possibly from an insolvency practitioner rather than a lawyer.

It really does sound like you and your fiance have been wronged, but that you've reached the stage where you need to pay for professional help to go any further and it may be good money after bad. How much is the CCJ for? You might want to consider walking away.

Sorry not to be of more help. Does sound like a very unfair situation.

jojooneill

Many thanks for your reply. I firmly believe that company law falls on the side of the company rather than the creditor - and they obviously use this to good effect. The actual amount owed was around £1,300 but has now gone up with interest (albeit a small amount). I've applied for a High Court Enforcement Order and hope something may come of this. I have the Directors home address (who lives with an ex-director of the company) will baliffs be permitted only on company premises (one of four at the moment...)? They currently have their house up for rent for £1,950pcm so I know they have the money!
Many thanks