Can I be a director again after liquidation?

In short: usually, yes. Unless you’re disqualified, you can be a director of another company, but some rules apply.

The report on directors

In every liquidation, the liquidator must look into how the company was run and report on its directors to the Insolvency Service. Most directors are not disqualified. Disqualification is for directors whose conduct has been unfit, for example taking money out while not paying tax, or not keeping proper records. If it does happen, it lasts between 2 and 15 years.

Reusing the company name

For five years after a company goes into insolvent liquidation, its directors can’t be involved with another company using the same or a similar name, unless one of the legal exceptions applies. One exception covers buying the business from the liquidator and giving the right notice. Breaking this rule is a criminal offence and can make you personally liable for the new company’s debts, so always check with us first.

Things that may still affect you

• If you personally guaranteed a loan, lease or supplier account, the lender can still ask you to pay.
• If you owe the company money through your director’s loan account, the liquidator will ask you to repay it.
• Bounce Back Loans are company debts with no personal guarantee, so directors aren’t normally personally liable unless the loan was misused.
• A company liquidation doesn’t appear on your personal credit file, although lenders may still take it into account.

Next steps

If you’re thinking about closing your company, a Creditors’ Voluntary Liquidation shows you’ve acted responsibly. Talk to us about your own position before you start anything new.

Related guides

• Is my company insolvent?Read more
• I’ve received a winding-up petition. What should I do?Read more