Rank: Forum user 
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My company went into admin last year and was then purchased. With reference to personal injury claims my CEO has said we dont have to bother defending the ones brought before the purchase as its the administrators that now own these claims but I disagree and believe the carry over under due diligence.
Does anyone have any clarification on this matter as I have been submitting supporting documents to defend liability on an £85k claim.
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Rank: Forum user
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Without looking into it further....... I would guess as a new CEO/company directors are in place that this may be the case. I would still be concerned that without mitigation, the insurance premiums may still rise but regarding prosecution, they may brush past potential imprisonment as this was not during their term of employment.
If the company still has the same name then the claim is likely to have a negative impact on the business regardless (financial)
Hope this helps a little.
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Rank: Super forum user
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Why the mention of prosecution and imprison mentioned in #2. The question concerns civil litigation not criminal law/HSE action. RTFQ.
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Rank: Forum user
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I stand corrected by Ian,
My apologies.
I am very familiar where such larger claims are generally (but not always) reportable under RIDDOR which in turn may trigger a visit from the HSE. This is fairly common and why I added the information.
I should not have added the prosecution info without understanding the current situation.
Regards
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Rank: Super forum user 
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Ok easy mistaka to maka.
The simple answer is I don't know...I do suspect that a personal injury claim can be made. The claim would be dealt with by the administrators acting as a 3rd party on the proviso the former company had ELI/PLI as the claim would be dealt via the insurers.
I don't know where you got 'due diligence' from - this is just a term, which is meaningless without some legal context.
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Rank: Super forum user
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What is the legal status of the company since it was bought out? I would think the company that was bought out no longer exists legally. I think the CEO has a point to some extent, the liabilites of the old company will be dealt with as a business matter. The PI claim will be dealt with by the insurance company that insured them at the time of the accident that has lead to the claim. Guess it comes down to company/insurance law. On a practical note, if the insurance company are trying to defend the claim, they will won't whatever information is helpful to them, so asking the people who are aware of the incident/were employed by the old company makes sense. Don't be so sentimental about due dilligence and corporate responsbility - the insurance company will do what they have to by law and to minimise their potential pay out. Its about the money - nothing else.
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Rank: Forum user
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I advise thay U do as your employer advises etc. and only provide info to others where your employer says so as its your job at risk if U cross your employer
Additionally a personal comment: Its imoral in my view that people are using administration as a business tool these days and worst this type of thing is becoming acceptable!
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Rank: Super forum user
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Morality has nothing to do with it. The original company went bust, was bought out, The matter will be sorted out by the relevant laws and insurance/legal practice.
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Rank: Super forum user
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It depends if the original company was wound up and all that the new business acquired was the assets of the original company. If that is the case then there will be no liability. If the business was bought as a working concern (even if it was in administration) then the liabilities will come over to the new business.
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Rank: Super forum user 
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Good question - one day our government may get round to eliminating Phoenix companies especially where the "new owners" are identical to the "old owners". "Due dilligence" concepts only refer to take overs and acquisitions as the company went in to administration a buyer and seller could not excercise due dilligence in understanding all liabilities and assetts to be involved with the transaction. The administrators will have acted "without liability" during the period of seeking a buyer and legally there is no chance of turning round in the future to present a legal bill with the statement "you didn't tell us about.." The new business is unlikely to have purchased any liabilities (this is where you hear creditors only receiving x pence for each pound they are owed, generally as a percentage of the debts from the proceeds of sale or liquidation and always after the administrator draws their pound of flesh) Meanwhile it is a problem for the insurers of the old company as it is they who will have to deal with any liability claim being made. The administrators should hold or have appropriately transferred necessary documents e.g. training records. As a direct employee be careful of any information being passed during and after administration - when the company went in to administration your protections as an employee of that company ceased. Unless you hold personal P.I. forget morals. As an employee of the new company you have no legal right to communicate the documents of the former company (even if these are records still in your office) as it no longer exists under law.
Politely decline any further requests by having a letter containing contact details for the administrators and the previous companies insurers.
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 2 users thanked Roundtuit for this useful post.
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Rank: Super forum user
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Good question - one day our government may get round to eliminating Phoenix companies especially where the "new owners" are identical to the "old owners". "Due dilligence" concepts only refer to take overs and acquisitions as the company went in to administration a buyer and seller could not excercise due dilligence in understanding all liabilities and assetts to be involved with the transaction. The administrators will have acted "without liability" during the period of seeking a buyer and legally there is no chance of turning round in the future to present a legal bill with the statement "you didn't tell us about.." The new business is unlikely to have purchased any liabilities (this is where you hear creditors only receiving x pence for each pound they are owed, generally as a percentage of the debts from the proceeds of sale or liquidation and always after the administrator draws their pound of flesh) Meanwhile it is a problem for the insurers of the old company as it is they who will have to deal with any liability claim being made. The administrators should hold or have appropriately transferred necessary documents e.g. training records. As a direct employee be careful of any information being passed during and after administration - when the company went in to administration your protections as an employee of that company ceased. Unless you hold personal P.I. forget morals. As an employee of the new company you have no legal right to communicate the documents of the former company (even if these are records still in your office) as it no longer exists under law.
Politely decline any further requests by having a letter containing contact details for the administrators and the previous companies insurers.
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2 users thanked Roundtuit for this useful post.
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Rank: Super forum user 
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Due diligence does not involve compensating people who have been injured in the past- it is simply the process of checking the risks and liabilities of a business before taking it over, and will already have been completed by now.
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