What happens to directors

When a liquidator is appointed, directors:

  • no longer have control of the company or anything it owns
  • cannot act for or on behalf of the company

If you’re a director you must:

  • give the liquidator any information about the company they ask for
  • hand over the company’s assets, records and paperwork
  • allow the liquidator to interview you, if they ask

You can be banned from being a director for 2 to 15 years or prosecuted if the liquidator decides your conduct was unfit.

Re-using company names

If you were a director of a company in compulsory liquidation or creditors’ voluntary liquidation, you’ll be banned for 5 years from forming, managing or promoting any business with the same or similar name to your liquidated company. This includes the company’s registered name and any trading names (if it had any).

The only exceptions to this are where:

  • the business is sold by a licensed insolvency practitioner giving the legally required notice
  • you get the court’s permission to use the name
  • you’re involved with another company that’s been using the same name as the liquidated company for at least a year

Read the guidance on re-using company names.