Hi there. A client of mine should have paid an invoice at the beginning of July. I have found out that they were paid by thier client in September in full. This clients MD has taken out funds and used them to fund a different busines's activities. Is the individual now liable for the debt if the original business is wound up? Thanks, Andrew.
1 Answer from Attorneys
Only the company (original business) is liable, except when there is fraud (criminal activity involved).
So if the company goes bankrupt, you have lost your money.
If you were able to negotiate that the goods were your property until full payment (not for perishable goods), you might have a small chance to recover the goods from the end client.