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Legal Ease
Legal Ease, Lawyer
Category: Canada Business Law
Satisfied Customers: 100373
Experience:  I am a practicing lawyer and have also been an online professional for 5 years.
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I owned a company in ontario. It was incorporated. back in

Customer Question

I owned a company in ontario. It was incorporated. back in March 2013 I closed the doors, because it was no longer a viable business. I sold the client list for $40,000 and used those funds to pay HST and Employment payroll taxes. I was the sole director of this company. Any remaining secure debt got rolled up into a consumer proposal and he been getting paid out through DBO. One creditor that did not make the list was WSIB because they are deemed as an unsecured creditor.
Then I went to work for the company that i sold the client list to. I own no shares in this second company norr am I a director of this second company. One of our clients is now saying that they can no longer do business with us because WSIB is going after them to pay the now defunct bills of the closed company. Is that even legal?!
Submitted: 2 years ago.
Category: Canada Business Law
Expert:  Legal Ease replied 2 years ago.

Are you saying you only sold a client list but no assets and not the corporation?

Customer: replied 2 years ago.
The only assets that were sold with the client list was 5 old xp computers and the 10 yr old xp windows server (obsolete at the time of the sale) . Plus the logo, domain and the phone numbers. No the Corporation was not sold. The Corporation was involved in manufacturing and the buyer wanted no part of that business.
Expert:  Legal Ease replied 2 years ago.

Then WSIB must be told that this is not the same business under another name and that the corporation was not sold.

These are clients that have nothing to do with this issue at all.

It may be best to have a lawyer send them a letter before real harm is done to this new corporation. The letter can explain the facts and threaten a lawsuit for damage if they don't stop.

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