Can I start a new company immediately after Insolvent Liquidation?

Yes. There is nothing in current Legislation that stops a director from starting up a new company immediately after his previous company has gone into Insolvent Liquidation.

The legislation that stops a director from becoming a director again is the Company Disqualification Act 1986. The government department will examine the conduct of all directors that have been involved in either Administrations or Insolvent Liquidations and they will form a view as to whether they think they are fit and proper to continue to be a director.

To find out more about this topic, read our previous blog post.

This is however, a separate process that the government undertakes post insolvency which would normally take a number of months, if not one or two years to fully run its course.

In summary, until the director has been informally banned, there’s nothing to stop him/her from starting a new company immediately after the previous company Liquidation. The one matter to consider carefully and which the director may require advice on is the name used by the new company and how similar it is to the name of the liquidated company.

For more information, we are available Monday to Friday on 0113-242-0808 or email advice@chamberlain-co.co.uk