When it is not okay to start a new company
When starting again can be, or can lead to, misconduct.
Starting a new company is not wrong. Setting up a new company following an insolvency can be a good thing. There can be positive outcomes from restarting, such as helping to save jobs and serving the local community.
Misconduct related to starting again
Some behaviour related to starting up a new company could be seen as misconduct. Some examples of this are where:
- there is abusive phoenixism
- the directors of the new company are personally bankrupt or disqualified from managing a limited company
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there is a pattern of behaviour, with directors not learning from past company failures
- the directors use the company for fraudulent purposes
- the rules about reusing the old company바카라 사이트™s registered name and trading name have not been followed - read our Hub page on reusing an insolvent company name for more detailsÂ
What we mean by phoenixism
Phoenixism is when the same business or directors trade successively through a series of companies which liquidate or dissolve leaving debts unpaid.
Abusive phoenixism is when individuals use companies repeatedly to evade debts or for fraudulent purposes.
You can read more about phoenixism here.
Action relating to misconduct
Directors involved in misconduct may face disqualification. Disqualification can last for up to 15 years and you cannot be a director or control a company in that time. If you ignore the disqualification rules you could face criminal proceedings. Read the full guidance on director disqualification.
HMRC have powers to issue 바카라 사이트˜joint and several liability바카라 사이트™ notices to directors and others associated with the company after it becomes insolvent. This could make you personally liable for company debts.