Legal Question in Credit and Debt Law in United Kingdom
recovery of monies when a company folds
What are the rights of a company (company A) that
discovers that its outsourced accountant has paid
salaries of employees of another company (company
B) through an online banking service, using the funds
of company A. At the time this took place, the
accountant did the accounts for a person who owned a
number of companies including Company B. Company
A had previously been owned by this person too, but it
wasn't owned by him at the time the frauds took place.
For a time after the change of ownership, the new
owner retained the services of the old accountant.
The accountant has since had a nervous breakdown
and has disappeared and is therefore not accountable.
The person who at one time owned all the companies
says that Company B has since been liquidated and
therefore there is no comeback for Company A.
The sums involved are not huge, but they are important
to this small company.
1 Answer from Attorneys
Re: recovery of monies when a company folds
This is not a straightforward matter and would probably benefit from a telephone discussion. I will however set out the general principles concerned as I see them.
There can be little doubt that the accountant acted negligently and I will discount at this time the suggestion of fraud by him or his employer. An early question should be whether the accountant carried professional indemnity insurance.If so it will probably the simplest and quickest to claim on this and allow the insurers to deal with the ancillary matters.it is irrelevant so far as a claim on the insurance is concerned that the accountant is no longer available and that the instructing company has been wound up.
This money was paid by mistake and would be recoverable from company B as such. This company has however been put into liquidation, whether voluntary or compulsory. Further information relating to this liquidation will be required. It could well be that as suspected what has happened is tainted with the fraud or at the very least malpractice. If this can be shown to be the case it is probable that the owner of company Bwould be unable to shelter under the veil of incorporation and would be personally liable for the monies.
As I said at the outset however, this is not a straightforward matter and will need further consideration. Please do not hesitate to get in touch if we can help further this
Andrew Dutton
Legal Zone
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