The following are common grounds in alleged unfitness in respect of the liquidated company:

  • Conducting a policy of deliberately not paying HMRC debts
  • Failure to keep maintain, preserve or deliver up proper accounting records
  • Trading to the detriment of creditors generally or specific creditors – this normally involves demonstrating a policy of non-payment of certain creditors;
  • Paying one creditor in priority to others when insolvency is imminent;
  • General public interest breaches including mis-selling or misrepresenting sales to customers or retaining customer deposits;
  • Wrongful trading of the company [Section 214 Insolvency Act 1986];
  • Fraudulent trading [Section 213 Insolvency Act 1986];
  • Trading in breach of legal and regulatory requirements – for example being involved in financial services schemes without having proper authority to provide such services by the FSA;
  • Misapplication or retention of company money or property, either for less than the market value or for no consideration;
  • Failing to prepare/file annual accounts or any other statutory returns to Companies House;
  • Failing to deliver up company documents and property.