A phoenix company is a new company that is created due to the failure of a previous company. The phoenix rises from the flames. It usually has the same Directors and a similar name to the company that failed.
It is not illegal to start up a phoenix company following the formal insolvency of the original company, but there are rules to be followed to ensure the phoenix company is properly set up and operated.
We will make you aware of these rules and ensure that you have the appropriate legal advice so that the whole process is seamless. The restrictions associated with a phoenix company apply to anyone who was a director or shadow director of a company in the twelve months prior to it entering into insolvency proceedings.
We will advise you on the steps that need to be taken with regard to the new company using a similar name. It is recommended that legal advice is taken in respect of this matter, to prevent the directors of the phoenix company being personally liable for the new company’s liabilities. Again, we will assist you with this process.