Is it illegal to put a company in a new name to avoid bankruptcy?

[Frankie473]

I’m concerned about a young family member whose boss is facing a big financial loss. Since the company is small, he has asked her to put the company under a new company name and in her name. That way any losses will mean the company can keep trading. Is this legal? She has done it but I’m concerned it’s fraud and she could be in trouble if the boss faces bankruptcy. Otherwise surely everyone would do that.

Omg!

As company director is she aware of her responsibilities...they are wide ranging.

How is the company structured...she could now be personally liable for company debts

That’s exactly what worries me. Her boss has apparently checked it with her lawyer but that means nothing. I don’t how to point her in the right direction for legal help

Citizens Advice might help.

Companies House will have guidance on responsibility of directors.

In my opinion she should immediately resign as company director (on the Companies House website) although I appreciate this might mean she loses her job and I'm not sure she can resign without someone else being put down as director.

Is the original.owner still listed as "person with significant control" (I may have got that wording slightly wrong)?

I don't think the police can do much since your relative will have had to read and sign various documents.