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Just keeping abreast of prosecutions by the HSE. I always read them and then post relevant cases on the noticeboard as a warning to all. Anyway, I noticed a company working in Bristol has been prosecuted and fined for failings to plan and supervise the work correctly. But the company is now liquidated. So if there is now company who pays the fines? Or is it just a meaningless gesture by the HSE?
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Rank: Super forum user
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As far as I'm aware no one will pick up the fine if the company is liquidated. Very often a nominal fine of £1 is the end result. For the life of me I really don't understand why the HSE bother.
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1 user thanked RayRapp for this useful post.
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Rank: Super forum user
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Ray beet me to it in a way - not sure which case you mean. It is possible depending on what stage the liquidation is that HMG and HMR (remember HSE dot get the fines only cost) are added to the list of creditors - But as ray says chances of getting anything is slim. Did the directors get struck off?
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1 user thanked HSSnail for this useful post.
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Rank: Super forum user
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Rank: Super forum user
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When a company is actually liquidated, ie wound-up it ceases to be, it joins the commercial choir eternal etc. All of the assets such as they are used to pay off any outstanding debts including any monies due to the courts (not the HSE). In theory they may get a bit but in reality they are unlikely to get anything. Is it worth prosecuting; well if they didn’t it would all be a bit pointless. Note, some businesses liquidate themselves to avoid paying any fines and then miraculously relaunch themselves. The unacceptable face of capitalism?
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Rank: Super forum user
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Originally Posted by: A Kurdziel
Note, some businesses liquidate themselves to avoid paying any fines and then miraculously relaunch themselves. The unacceptable face of capitalism?
I know that feeling. I need some steel CDS tube for a rollcage. I was given a company name but told that "I haven't used them in years" Not surprising, it took a while to track them down and they've gone bust 3 times and resurected themselves with different members of the same family as directors. But each time they have moved premises.
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So according to companies house decided Extraordinary resolution to wind up on 2020-01-03. Do we think the pending court case had anything to do with this resolution?
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Rank: Super forum user
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I think you may be right, will be interesting if any of the directors start a new company and how long it takes them
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Rank: Super forum user
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These companies who go into voluntary liqudation to avoid prosecution and then resurface at a later date usually under another business name are known as 'phoenix' companies i.e. risng from the ashes. It should be made illegal and directors should be held accountable regardless of the status of the organisation. Of course, directors can be struck off pursuant to the Companies Act, but this happens rarely and only for the most serious of cases.
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4 users thanked RayRapp for this useful post.
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Rank: Super forum user
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As has been said, the unacceptable face of capitalism. I blame Maggie Thatcher, but then I blame her for most things.
There is a saying that the law is only for the bad boys, as the good guys would be complying anyway. The problem is that the bad boys find ways around things, like liquidating the company, so in these cases the law as it stands doesn't work.
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