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Removing limited liabitity from a company?

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  • 07-06-2003 9:05am
    #1
    Our man in Havana
    Closed Accounts Posts: 29,476 ✭✭✭✭


    In what curcumstances can the limited liabitity be removed from a limited company?


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    #2
    G
    Registered Users Posts: 382 ✭✭G


    You mean liability? I don't think you can do that since ltd means limited liability. You would probably have to re-register as e.g. a sole trader or just de-register from limited.

    :)


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    #3
    LoneGunM@n
    Closed Accounts Posts: 1,414 ✭✭✭LoneGunM@n


    As far as I know, if the company has been found to be fraudulently/neglectfully trading, the limited libaility is removed from the directors i.e. they can be made to 'make right' the liabilities of the company!!

    I also think that the government are drafting a new bill, so as to remove a percentage of the limited liability, so that if the company does go into liquidation/receivership, the directors will have to 'make right' a percentage of the liabilities.


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    #4
    Our man in Havana
    Closed Accounts Posts: 29,476 ✭✭✭✭Our man in Havana


    Thanks for that.


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    #5
    irlhost
    Closed Accounts Posts: 274 ✭✭irlhost


    Hi Guys

    My accountant days come rushing back to me.

    The term LIMITED in a company is there to warn others that the limit of liability end with the company and does not extend to the shareholders. .ie if you are a shareholder in a company you can only lose the amount of money you have put into it and not the shirt on your back.

    However, directors of a company (who don’t have to be shareholders) can be held legally responsible for fraudulently/neglectfully trading and even not filling returns. However they are not responsible for the company just getting into debt.

    You can if you wish apply to become “UNLIMILTED” a good example of this type of company is Lloyds of London who guarantee all liability right down to their shirts on their backs. This would mean that the shareholders are held responsible for debts the company can’t cover.


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