Can you trade while in liquidation?
Many people are looking for information on can you trade while in liquidation? here at Debt Solutions Hub we answer some of the most pressing questions for business owners.
The brief answer is no, as soon as a Company enters liquidation trade should cease. Liquidation automatically terminates all contracts the Company has (suppliers, employees etc) and your powers as a Director cease immediately. You have no authority to act on the Company’s behalf. If you are facing short term cash-flow problems or believe continued trade is the best outcome because you have a viable business i.e. you have longstanding contracts, good relationships and a pipeline of future work, then Administration may be a better option. Administration does not automatically terminate contracts and allows trade to continue with the possibility of the Company being returned to you. To discuss all of your options call us on 0330 159 8080