Can we start again after Administration?
There is no restriction placed on directors from starting another business. That is unless they have been disqualified by the Insolvency Service following an investigation – and you would know if you had.
There are restrictions on directors using the same or similar company name under Section 216 of the Insolvency Act 1986 if the company that went into Administration, subsequently went into Liquidation. There are some ways around this such as:
If there was another company in the Group which is over a year old with a same or similar name.
Another way to continue to use the same name is to apply to Court for permission.
If the assets are bought from a liquidator, then a notice in the prescribed form can be sent to all the creditors and an advert published in the London Gazette within 28 days of the business purchase.
If you want to keep a business together, keep the name and retain the staff, the best way to do this may be by pre-pack Administration or a Company Voluntary Arrangement.
- UK law does not restrict a director from starting another company after Administration.
- Be careful if re-using the same or similar company or trading name.
- You will be restricted if you are banned from being a director by the Insolvency Service.
David Kirk did exactly what he said he would. I’d be lost without Administration. Without David, we would have gone bankrupt by now. Really good