I'm seeking advice regarding the trading records of a company in liquidation. The situation is as follows:
ABC Ltd went into liquidation in September2013. At that time there were 2 directors of ABC Ltd.
One director bought the business assets of ABC Ltd from the liquidator, started as sole trader, took over the rental and remained in the business premises of ABC Ltd.
Still in the premises are filing cabinets containing a good few years of trading paperwork relating to ABC Ltd.
The sole trader now has to move to new premises and wishes to clear out and dump the old ABC Ltd paperwork.
Is there a problem with this ?
In other words who is responsible for the past paperwork of a company currently in liquidation ?
All books and records must be kept for ten years following liquidation.
Insolvency practicioners will not keep the documentation after the liquidation so it falls to the ex directors to ensure that they retain access to the documentation.
They don't need to be cluttering up filing cabinets but they must not be destroyed and should be kept safe and dry.
If your client does not have the room there are companies that specialise in off site documentation storage at a fee.
In short answer to your question though, the ex directors are responsible and the documentation must be kept.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.