Client being sued - advice required

dantray Registered Posts: 72 ? ? ?

I require some advice for a client i am meeting this evening, currently being sued.

Client is a ltd company building firm, who operates on a subcontract basis for contractors, and also engages his own subbies.

One of his own subcontractors has had an accident at work and is suing him for a considerable sum (£70k). My client is of the opinion that liability falls with the main contractor and this is being thrashed out between their solicitors.

Anyway, leaving the legal stuff to the professionals...

The £70k being sought would render my clients business bankrupt. Already the legal fees are mounting up and his opinion is that he will 'just fold the business' to avoid all of this.

Is this correct?

Is he able to wind up his company and set a new one up to continue to trade under a different entity and effectively wash his hands of the whole thing?

I would have thought there would be some kind of clause in the CA to prevent this from happening. Can the claimant object to the winding up? Would he count as a potential creditor of the company and therefore need to be contacted to approve the winding up?

if anyone has experience or knowledge of this scenario I would be grateful of your advice.



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