If your company is the subject of compulsory liquidation proceedings (company winding up order by the court) you will need to seriously consider your own conduct as a director generally. Also, any actions you have taken or failed to take which have led to your company’s demise will require due consideration. This period of considered reflection will need to cover the most recent three years of your directorship.
Even if you were not an appointed director recorded at Companies House you may still be held as a shadow director if your decisions, and or actions influenced the promotion and or management of the company and more importantly contributed to its demise. Shadow directors are treated the same as appointed directors. This means shadow directors can be held personally liable as if they were an appointed director.
Compulsory liquidation does not mean you can leave all the company’s debts behind and simply walk way without recrimination and or personal liability claims being made against you as director or shadow director.
You will be summoned by the Insolvency Service, an executive agency of the Secretary of State for Business Innovation and Skills (BIS), to an interview. These interviews are usually quite robust and investigative in nature. The individual conducting the interview is an experienced investigating examiner acting on behalf of the official receiver who is also an officer of the court.
After considering the evidence gathered during their investigation the official receiver may decide prosecution against the company’s directors is appropriate should the evidence in hand appear compelling. In such instance directors disqualification proceedings will commence and a court order sought for the directors’ to be made personally and financially liable for the insolvent company’s loss.
Compulsory liquidation is very serious and you will need expert help, for more information on interviews with former directors conducted by the investigating examiner from the Insolvency Service go to Directors’ Compulsory Interview (by Insolvency Service)