- Tue Sep 10, 2013 5:03 pm
Hi there Regie71
Luke is not quite right here. Generally speaking under Section 216 (2) of the Insolvency Act a director is not allowed to set up a new company and start trading under the same name or a similar name to that of the old company that has been liquidated.
However there is case law which provides options to set up a new company but continue to trade under the same name.
One of these is if the new company purchases the right to use the old company's name from the liquidator. There are certain processes that have to be followed and notices given but if this is done and fair value is paid then it is possible for the new company to continue to use the name of the old.
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