Can a phoenix company reuse the Name of the original liquidated company?
Prohibited Name - Reuse? - Exceptions listed in The Insolvency (England & Wales) Rules 2016
The general rule is that there is a complete bar on the re-use of a liquidated company's registered name and trading name by a re-start phoenix company unless detailed Insolvency Rules are first followed.
The penalty for infringement of these Rules can be:
- imprisonment and a
- fine and
- personal liability for all of the debts of the successor company should that company also fail at some time in the future. If you are interested in reading the law as set out in section 216 and 217 of The Insolvency Act 1986 click on the link.
If you would like to read an actual case regarding an individual who breached section 216 click on the link.
There are three exceptions to the general rule that a successor phoenix company cannot re-use the original company registered name or trading name: If you are interested in :
- Reading about those three exceptions that are set out in the Insolvency (England & Wales) Rules 2016 click here.
- Reading actual cases concerning applications to court for the re-use of company names click below:
The directors of a phoenix company must be careful to ensure that they have followed the Insolvency Rules regarding the reuse of a liquidated company's name - otherwise they are exposed to personal liability, disqualification and imprisonment.
Would you like us to give you a call?
Fill in the form and we'll give you a call as soon as we can to discuss your needs in a free initial consultation with a Licensed Insolvency Practitioner. Alternatively give us a call on 01326 340579 if there is an urgency to your needs.