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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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I bought some shares in a PLC company a few years ago, the

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I bought some shares in a PLC company a few years ago, the shares were not floated on the stock market and now the company is to go into liquidation. I realise I will lose the money I invested in the shares but am concerned that I may also be liable for any company debts. As I am now on benefits I would be unable to cover any debts. Do you know if I will be liable for any debts as a shareholder and would there be a chance that I may get some money back for the shares?

HelloCustomer

 

Thank you for your question.

 

If you are merely a shareholder in the company then only your shares at at risk. The assets of the company will be realised by the liquidator and used to pay in the following order:

1. Expense of Winding up

2. Preferential debts

3. Monies secured by floating charges

4. Unsecured creditors

5. Interest on preferential and unsecured debts

 

Any surplus will then be distributed by the liquidator amongst the shareholders (ie. you). You should contact the company and ask if they have appointed a liquidator (this may be an official receiver). They will keep you informed of the liquidation process, and whether it is likely you will receive any money..

 

If you cannot obtain information from the company as to liquidator then you can check the London Gazzette, business sections in national newspapers, or contact the nearest official receivers office:-

http://www.insolvency-service.co.uk/officemap.htm

 

I hope this helps if so please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.

 

Kind regards,

 

 

Tom

 

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