Phoenix Companies - Save your Business - Index to related Liquidation Law & Rules

What is a phoenix? - Definition - How to restructure Your Business

 

There is a common misconception that it is illegal or somehow improper to set up a phoenix company out of the ashes of a business that has gone into liquidation. By following the law that is found in The Insolvency Act 1986 and The Insolvency (England & Wales) Rules 2016 it is quite proper to set up a successor entity similar to the liquidated predecessor business.

 

It is therefore not illegal or improper to start up a phoenix following the liquidation of the original company. The big proviso is that the Insolvency (England & Wales) Rules 2016 must be followed to the letter. If those Rules are not followed the responsible director can be fined, imprisoned, disqualified and made personally liable for the debts of the successor business (Sections 216 and 217 of The Insolvency Act 1986). The process must also be, at best, in the interests of the creditors of the original company and at worst not to the detriment of those creditors.

 

The vitally important detailed Insolvency Rules to be followed to ensure that the successor company is properly set up and operated can be found by clicking below. The detailed rules concern:

 

 

 

For more information on the Insolvency Rules or on any other question relating to phoenix companies please contact Chris Parkman BSc (Hons), MIPA, MABRP, ACCA and Licensed Insolvency Practitioner for telephone advice on 01326 340579 or for a FREE INITIAL MEETING. We will explain the relevant liquidation law, rules and procedure  that you need to follow in everyday language.

Cookie Preference

We use cookies on our website so you get the best experience and so that we can see where our site is working well and where it is not so that we can improve it for you.

We have already set one cookie essential for the normal operation of the site, however we would like your permission to activate performance monitoring cookies so that we can see how the site is performing, specifically Google Analytics and Google Adwords conversions. For full details of the cookies we'd like to use please refer to our cookie policy.

Please make a choice below as to whether you will allow the cookies or not. Thank you!


Allow Cookies     No Thanks