"Can I become a Director of another company if If I decide to close my current business?"

One of the most common questions that crop up time and time again is whether directors of a liquidated business can become directors of a new ltd company.

The short answer is YES!

As long as there has been no conduct issues or wrongful trading you should be absolutely fine. You can be a director of as many companies as you like at one time.

A couple of things to think about......

1. The business name of the new company doesn't want to be too similar to the old company. In the 1986 insolvency act , section 216 it could be seen as 'passing off' this is not good and could get you into a lot of trouble.

2. If you do want to set up and use the same name it is possible to purchase it from the insolvency practitioner who is liquidating the old company. You will need to apply to the courts for this.

3. If you do apply to the courts then you will need to explain your case and pay a fair market value for the name and it will need to be valued independently.

One of the main problems with setting up a company with a similar name is that the creditors of the old business are going to see it in bad taste. It will look like the directors have pulled a stroke even if you have followed the right channels.

If you have any questions on this please send me a message or leave them in the comments below.

Also If you have found the post helpful, give me a like and a share.

All the best,

Chris