Dissolving company - Virgin Media Contract

berimbolo80

I'm dissolving my company after 1 year and still have 1 year left with my Virgin media contract.

What will happen to my contract once the company is dissolved?

Wywth

berimbolo80 wrote: »

I'm dissolving my company after 1 year and still have 1 year left with my Virgin media contract.

What will happen to my contract once the company is dissolved?

Surely you will pay VM off as part of the dissolution of the company

berimbolo80

Wywth wrote: »

Surely you will pay VM off as part of the dissolution of the company

Why do you say that? I can dissolve the company without paying them off....

martindow

Are you dissolving this company because it is insolvent or has more debts than funds?

If you have some funds in the company it should pay off outstanding debts. If these funds are insufficient all of the funds are used to pay off as much as possible. Some debts like VAT have priority over others.

Wywth

berimbolo80 wrote: »

Why do you say that?

Because I had hoped you were not morally corrupt.

berimbolo80 wrote: »

I can dissolve the company without paying them off....

Go on, I'd like to see you try! :cool:

antrobus

berimbolo80 wrote: »

Why do you say that? I can dissolve the company without paying them off....

There are prescribed legal procedures for liquidating a company.

https://www.gov.uk/liquidate-your-company/overview

berimbolo80

antrobus wrote: »

There are prescribed legal procedures for liquidating a company.

https://www.gov.uk/liquidate-your-company/overview

I'm not liquidating it. I'm dissolving it.

ILW

berimbolo80 wrote: »

I'm not liquidating it. I'm dissolving it.

You cannot legally dissolve a company with any outstanding debts.

antrobus

berimbolo80 wrote: »

I'm not liquidating it. I'm dissolving it.

Liquidation is the legal term used to describe the process of dissolving a company. The law specifies the method for establishing limited companies and it specifies the method for un-establishing them no matter what label you attach to the process.

I suspect that what you mean by 'dissolving' the company is that you will simply fail to submit returns or accounts to Companies House and wait for them to strike off the company.

It happens.

However not following the correct procedures would leave the director(s) at risk of both criminal and civil penalties.

CKhalvashi

ILW wrote: »

You cannot legally dissolve a company with any outstanding debts.

Technically, yes you can, and we did this last year.

The vital part is 'all known creditors will be paid in full' appearing on the top of the Gazette, and as long as all creditors WILL be paid, there's legally no issue.

The company needs to be liquidated in this case, rather than automatically disolved, and whilst I don't know how to describe it, the bill will need to be paid.

CK

berimbolo80

antrobus wrote: »

Liquidation is the legal term used to describe the process of dissolving a company. The law specifies the method for establishing limited companies and it specifies the method for un-establishing them no matter what label you attach to the process.

I suspect that what you mean by 'dissolving' the company is that you will simply fail to submit returns or accounts to Companies House and wait for them to strike off the company.

It happens.

However not following the correct procedures would leave the director(s) at risk of both criminal and civil penalties.

Actually it looks like you can strike it off yourself https://www.gov.uk/strike-off-your-company-from-companies-register/apply-to-strike-off.

One thing I don't get is do I need to pay off my contract first?