Statutory demand for debts from abroad possible?

Flyright

You cannot pursue directors personally for money owed from a limited company.  All they have to do is show a court that the debt was incurred by a separate legal entity.  You have no grounds to pursue the directors personally.

djcat

Thanks for your replies and opinions, I am taking this up with a lawyer in London now. Limited liability was invented so that people could take certain risks natural to business, not for fraudsters who want to avoid known responsibilities. Hence I will go to court in London as advised by the legal firm. 

Minkym00

There are several things to comment on on here.

In the case of a company, the place of the registered office is presumed to be wherever the centre of main interests is (in the absence of proof to the contrary). The centre of main interest is not in the UK therefore insolvency legislation in the UK will not help you.

Being a limited company (in the UK at least) indemnifies directors against the debts of the company UNLESS there is proven misconduct or illegality. It’s known as “piercing the veil of incorporation”. Unless there is proven misconduct or illegality,  the directors are not personally liable for debts unless they have given personal guarantees. This company is not in the UK so you would need to check the local legislation.

What your friend has suggested is a complete non-starter, however much you want it to be true. You need to make a claim in the company liquidation in the country that you’re in.

But, hey, let us know what the London firm says..

mwarby

The London firm I fear will say lots and lots, then produce a massive legal bill, very probably without recovering any money. But that’s the OPs call to make

Minkym00

Agreed mwarby. 

As annoying as it is, in the UK at least, is perfectly legal for ABC Ltd to go into liquidation on Monday and on Tuesday open up as ABC (London) Ltd and take all the new business from the first company, without any of the debts. That’s how UK legislation works anyhow.