Suing an Insolvent Company - easing the burden

Monday, 20th June 2016

If you have suffered an accident at work or, perhaps, been in an accident where the driver was acting in the course of his employment you may find that your remedy in law is to sue a Company. What happens if that Company has gone bust and is dissolved?

If the Company has insurance you can rely on that cover to receive a pay-out but the present law requires the Company to first be "re-instated" to the Companies House register before you can start legal action. This can be time consuming and expensive.

From 1 August 2016 it will become easier to sue a dissolved Company as long as either the insolvency or the accident arose after 1 August 2016 (or both).

New Regulations allow victims of accidents to bypass the re-instatement procedure by naming  the dissolved Company's insurance company as the Defendant in the case, in place of the Company. This will save time and costs.

For more information see the www.gov.uk or click here.

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Gemma Rowe

Chartered Legal Executive

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+44 (0)1392 334017


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