The company was formed by the director as a vehicle through which he could provide IT consultancy to the finance and retail sector.
The director had previous experience in this field through permanent employment, but having left his job to spend time travelling abroad, he decided upon his return to the UK to take up a contracting opportunity.
Contracts typically spanned 3 to 6 months and remunerated him at a rate ranging from £400-£500 per day.
The director either worked on site or from his home in Hertfordshire as it was not deemed necessary to secure office premises.
Having never required an overdraft facility from the company’s bankers the company relied on its own cash flow for liquidity.
Initially, the director was continually on assignment during which time the company operated successfully.
Regrettably, irreconcilable problems within his personal relationship, finally led to a separation from his partner and thereafter the director became embroiled in proceedings as she made access to his young children very difficult.
Problems during the relationship went on for over 2 years during which time his father was treated for cancer and also had a heart operation, and the director virtually completely lost his focus on work.
Regrettably, he also neglected his responsibility to ensure the company was compliant in the completion and submission of its statutory documentation and returns for HM Revenue & Customs. As a result the company’s annual return and statutory accounts were never filed and as a result, the company was struck off the register.
At the time of its dissolution, the company had funds in hand and liabilities, which although unquantified were seemingly greater making the company insolvent.
Conscious of his duties as a director and anxious to close the company in an orderly manner, AABRS Limited were contacted and on advice, a firm of lawyers were engaged to apply for the company to be restored to the register, for the purpose of convening meetings of shareholders and creditors pursuant to Section 98 of the Insolvency Act 1986.