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Small Software went into liquidation

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    #32
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,035 Mod ✭✭✭✭Jim2007


    Hessie wrote: »
    A few of the staff took the source code of the existing products and told the customers they acquired it from the liquidator which they could have but didn't.

    If that was the case, then it would have been at the liquidator's discretion what if any course of action he wanted to take. Most likely he either decided to abandon the asset or that the legal costs of an action would have out weighted any benefits he might of obtained from the action.

    Either way unless you asked the question at the creditors meeting and challenged the decision of the liquidator to the point that he reversed his decision or was instructed to do by the creditors, then the issue is mute.
    Hessie wrote: »
    I am left with a load of personal debt that went into the business.

    Unless you submitted these claims to the liquidator within the time period set out and had them verified by the liquidator then you have no claim on the company.
    Hessie wrote: »
    Yes the liquidation is finalised. I was told I couldn't acquire the software because I was a director of the company. There was other investors involved so I had to be careful that everything was done right. At the creditors meeting there was a liqidator with one of the creditors and he put a figure of around 100k on the software. He said that the staff had been telling the customers that they were creating a new company. The business was advertised in the business post. The ex staff were always operating in the background. It was difficult because other businesses were depending on the software and I didn't want to bring anyone else down.

    It is hard to understand the outcome of this meeting, but it would appear that liquidator was instructed to dispose of the business and any action concerning the behavior of the former employees was left to his discretion, would that be it? Was the business in fact sold or what happened to it?

    Either way once the liquidation is finalized then it is all over. The liquidator simply writes off or abandons any remaining assets (they do not transfer to the state), pays himself, the revenue and distributes what is left to the creditors, submits the final returns etc.. and that is where it ends.

    Hessie wrote: »
    That's interesting I am the biggest creditor of the company.
    Well assuming it is now finalized then you were the biggest creditor and even if you were you do not have a right of action against the former employees that would have rested with the company and it's liquidator.


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    #33
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Jim2007 wrote: »
    The liquidator simply writes off or abandons any remaining assets (they do not transfer to the state).

    Am i interpreting this incorrectly:

    A company can be dissolved either through liquidation or through the strike-off process. Please also find links to information on Examinership and Receivership.

    Dissolved Company Assets: Once a company has been dissolved, the assets of the dissolved company become State property. Where an application relates to Real or Leasehold Property it is dealt with by: The Office of Public Works. Applications in writing to - ****. Where an application relates to Personal Property this is dealt with by: Property Section, Department of Expenditure & Reform, Government Buildings, Merrion Street, Dublin 2.
    https://www.cro.ie/Termination-Restoration/Company


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    #34
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,035 Mod ✭✭✭✭Jim2007


    Graham wrote: »
    Dissolved Company Assets: Once a company has been dissolved, the assets of the dissolved company become State property.

    This is academic stuff and is really only there to cover situations where a company is a fully functional business and gets struck of for some minor infraction. Once it is corrected everything is back to normal, the state is deemed the owner between the date the company was struck off and when it was restored. The state does not not do anything it is just covering a legal loop hole.

    The second case is where a company is deliberately brought into a state where it can be struck off. Here again all assets are disposed of by the directors, so all that might remain is the company seal and books of account - again the state could not care less what happens to them because they are worthless.

    And then there is a liquidation, where the liquidator will raise all cash possible by sell off what ever he can at the least expense, then pay everyone off and that is that. In this case a liquidator could end up spending a lot of the cash he raised trying to get control over the software, fail and then end up with less cash for the creditors and that is never acceptable to the creditors.

    By the same token the state would have no interest in the left overs - it knowns well that what remains is either worthless or would require a lot of up front cash to but it right. It is interesting to note that while legislation provides for such assets becoming state property, it does not provide for a receiver of such property, with good reason I expect - it would be junk :D


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