Audit firm, Wbg has warned directors against the repercussions of failing to deal with failing companies in the proper manner and illegal ‘phoenixing’.
The caution follows reports that a Scottish company director used a ‘corporate rescue’ process to shut down his winter sports business and dodge paying out money to staff by paying bogus directors to take the place of the former directors whose companies had built up big debts to HM Revenue & Customs and others, leading to the Insolvency Service taking action to shut it down.
It is alleged these directors made no efforts to save stricken companies, instead leaving them to be dissolved. In many cases, directors reportedly ‘phoenixed’ companies, carrying on…
