Limited Company – Small Claims Court

[Kitty876]

I have a limited company that is being taken to the small claims court. The court action is in the name of the company. The company has no assets. The bill including costs is £550. As the director of the company I have disputed the bill, but if the court find in favour of the creditor, what can they do ?

Put the company into liquidation

They cannot recover the money from you unless you owe money to the company, paid dividends while the company is insolvent or your actions as a director amount to misconduct. All they can do is force the company to be wound up. Even that is pointless if the company genuinely has no assets that could be sold to meet the debt.