From the 12th May the Insolvency Service has been given new power to investigate directors of dissolved companies and apply fines and bans from acting as a director.
This new legislation gives the Insolvency Service the power to revisit dissolved companies that took Bounce Back Loans and Coronavirus Business Interruption Loans that have closed and then the business has just started again elsewhere.
Often directors who do not have enough funds to liquidate a company use a process called striking off and Companies House form DS01. This means the company is dissolved without a proper liquidation process. A liquidation has to be carried out by a Licensed Insolvency Practitioner who is regulated and will carry out a full investigation of what went wrong and make a report to the Insolvency Service.
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