Is this illegal?
Discussion
Someone with an event room hire business that set up in the last 12 months has taken deposits for future events that will now be unfulfilled as the person has decided to close the business.
Said person has not been forthcoming in refunding the deposits and has now gone quiet.
Company is a limited company
Said person has not been forthcoming in refunding the deposits and has now gone quiet.
Company is a limited company
Countdown said:
It might be illegal but it might just be because they're crap at business.
The creditors need to start the winding-up process to try and get their money back.
Only illegal if they took the deposits with no intention of being able to fulfil the contract. Or as mentioned already they could just be rubbish at business.The creditors need to start the winding-up process to try and get their money back.
It's not a huge amount but i know of several other people who are waiting for their deposit back.
Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
martt said:
It's not a huge amount but i know of several other people who are waiting for their deposit back.
Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
Ultimately it's all about what you can prove and whether the directors are negligent, fraudulent, or just bad business people.Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
If they're just bad at business, then what you get back is determined by what is left in the company after the administrators have been in.
If they're negligent (and have traded whilst knowing they can't fulfil orders), then the directors might be personally liable.
If they're committing fraud (i.e. have taken orders they have no intention of fulfilling) then they can go to jail.
But as I said, really it's down to whatever can be proven in a court of law.
Unsurprising there is now an application to strike off against this company. This is the second company that this person has set up and struck off, both within a year. His other company is a building/construction company.
Obviously I’m unhappy about the situation. What’s to stop him from doing this again?
Is there any legal body or something that I can apply to where this can be highlighted and investigated?
This person could have hundreds of customers in a similar situation and be taking us all for basically whatever he wants
Obviously I’m unhappy about the situation. What’s to stop him from doing this again?
Is there any legal body or something that I can apply to where this can be highlighted and investigated?
This person could have hundreds of customers in a similar situation and be taking us all for basically whatever he wants
martt said:
It's not a huge amount but i know of several other people who are waiting for their deposit back.
Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
When my daughter was in primary school so 20 years ago, the husband of her teacher and his business partner, set up a Gym. Leased all the equipment, took yearly fees from punters, paid themselves big wages. Ran for about 9 months. Before the owners of the building and the owners of the gym equipment realised they were never going to get paid. 100s of punters lost anywhere between 3 and 12 months fees. Just thought it would be a nice easy way to make a few quid
Open a limited company
Show people around a shiny new venue
Take deposits for future events
Close company
But like you say, it could be someone who is poor at business, or someone playing the system?
Teacher's husband spent his salary rebuilding thier house. I think they took a chance as much the commercial properties in the area are owned by 2 or 3 very dodgy Entrepreneurs, who will find other ways to get thier money get thier
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