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  • John Childs

    Member
    April 25, 2007 at 2:52 pm
    quote KARL WILLIAMS:

    If this new guy has taken over the business and is trading under the same name, he has taken over the business and all its debts.
    He owes you. Tell him pay up or lose the sign. Simple.

    Not necessarily so Karl.

    If you buy a limited company by buying all the shares in that company, then the company still owes you.

    If, on the other hand, it was a sole proprietor or a partnership, then the debt belongs to the individual who placed the order. The fact that this new guy started a business, which coincidentally had the same name as the old one, is immaterial.

    The moral here is never to buy a limited company or you may leaving yourself open to being saddled with debts, warranty obligations and other liabilities which were withheld from you at the point of sale. Better to just buy the assets and goodwill and start your own limited company, probably using the same trading name with just the year, 2007 maybe, or some other identifier tagged on at the end.