To be clear about S216, it says that if someone was a director of a company that went into insolvent liquidation at any time in the 12 months preceding liquidation, they may not be a director of a company known by a prohibited name, be involved, directly or indirectly, in the formation, promotion or management of a company known by a prohibited name, or be involved with carrying on a business under a prohibited name. This bar lasts for 5 years after the original company went into liquidation. A prohibited name is a name by which the original company was known at any time in the 12 months preceding liquidation, or a name which is so similar as to suggest an association with the original company.
There are three ways round this:
- the directors can buy the original company, its debt and the company name
- the directors can apply to the courts to keep the original company name
- the directors can set up the new company more than 12 months before putting the old one into liquidation. The new company must not be dormant during that period
The fact you were sent notice suggests it was not the third option. You need to find out exactly what they did as that will govern your next steps. If they took the first option, for example, the new company must pay the amount awarded by the tribunal. Get legal advice and don't give up.