Law question - advice (boaty)

[TwoStroke]

Have just had an estimate in for the work to be carried out on the fuel sender etc... quite an expensive job to put the boat back to its original position.

The boat yard that carried out the work has now been bought by another boatyard company. Is the new company still liable for work carried out by the previous one?

Please advise?

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[TwoStroke]

Have just found out that it's a partnership that have bought out the Ltd co, and are trading under the partnership name. Therefore no liability transferred. Bugger. For those that may be interested, if trading using the same comapny registration number then new company is still liable.

Have now asked the new company as to whether they will consider a good will gesture as am also looking at trading up later next year. Will see what happens.

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[Dave_Snelson]

I would have thought it unlikely. The company taking over, tends not to want to take over the old companies problems, and the sale proceeds on that basis...but maybe they have done the decent thing?? Worth checking.

<hr width=100% size=1>Madoc Yacht Club
<A target="_blank" HREF=http://www.madocyachtclub.co.uk>http://www.madocyachtclub.co.uk</A>

 

[MedDreamer]

I am not a lawyer but I think....

If the partnership has bought the assets of the business, rather than the share capital, then the original limited company will still exist (unless it is liquidation).
That being the case the liability can be persued against the limited company.
If the limited company has been voluntary wound up by the directors (not voluntary liquidation) then the directors have a duty to ensure the company settles all liabilities and you may have redress against them personally if they have not done so.

If the company is in receivership or has been placed in liquidation then despite what the law says you are probably (IMHO) knackered.

<hr width=100% size=1>Martyn

 

[Deleted User YDKXO]

Good points. It's quite common for a purchaser to buy the assets of a business rather than the business itself in order to avoid the due diligence process and any liabilities that the business may have. In any case, IMHO, just because a limited company is bought by a partnership does'nt mean that the limited co. ceases to exist so, either way, the limited co probably still exists

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[TwoStroke]

Have just checked with Companies House, they have just received last years accounts and have not had any winding up orders disclosed to them - so it could be they are still winding up the company.

Will see what they say about the goodwill gesture and will take it from there.

Many thanks for the advice so far. /forums/images/icons/smile.gif

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