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Can a dormant company lend money?

Can a dormant company lend money and then assign it and recovery through another company?

Didn't find your answer?

Can a dormant company lend money to someone, with a contract for an amount just under £500,000? Does that count as trading? Especially if they declare no income / expenditure to coho?

Can that dormant company then assign the debt to another company to take on recovery? Does that constitute trading also?

Is this illegal or common practice and Im missing the boat?

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Replying to Aliceinwonderland:
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By maxmillion
19th Jan 2020 15:06

It seems to me though, that your OH was apparently unconcerned when he accepted the loan from this "apparently dormant" company.
The fact that they then reassigned the loan to someone else is where you should probably be focusing. To query the company dormant status now (in any context) seems like an attempt to mitigate the issue but you should probably be pursuing or arguably suing that "dormant" company if they did not have the authority to reassign it.
But as others have explained so patiently, not relevant in this forum.

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By bernard michael
17th Jan 2020 16:25

This is becoming a waste of time & effort.
The OP needs say whether they have sought professional help regarding the petition. The professional will decide whether the "dormancy" or not is an effective rationale to get it dismissed
Meanwhile blethering on here is not going to alleviate their situation

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Replying to bernard michael:
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By Tax Dragon
17th Jan 2020 16:34

bernard michael wrote:

This is becoming a waste of time & effort.

I think that might have happened long before 07.26 too.

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Lisa Thomas
By Insolvency Practitioner
17th Jan 2020 16:51

You might prefer to ask your query on a legal forum - try this one:

https://www.ukbusinessforums.co.uk/forums/legal.57/

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