Can a Ltd business Gas debt end up being a personal debt

[Buncrana]

A friend recently closed down the business they had run for the last few years.

 

Their gas supplier went into administration and the regulator appointed another supplier in November 2021.

 

Their gas bills for the period, November 2020 to February 2021, were just over £200.

 

Their gas bills for the same period, November 2021 to February 2022, were just under £800. An increase of around 370%.

 

They have paid around £570, which is what they were invoiced for, in March 2022.

 

The new company are now coming back for more, around £220-00, that they say is outstanding.

 

Before they made this demand my friend had already contacted Companies House to get the business struck off as they are no longer trading in that business and have also moved to a different part of the country. The business closure has already been placed in The Gazette.

 

Their bank had also been contacted and their business accounts are now closed.

 

My friend is about to start a part time business, more as a hobby really, for something to do in their retirement, and beer money

 

They are worried that if they don't pay this bill it may follow them into their semi retirement.

 

The last thing they want are bailiff's showing up.

 

So, can this business debt follow them?

 

Every other invoice that was presented while the other business was running down has been paid in full and nothing else, apart from this gas bill, is outstanding...

 

Any help would be very gratefully appreciated

 

Buncrana.

 

Ps, the new company are only contacting by email as they don't have their new address but, I assume, it wouldn't be too difficult to find.

 

I forgot to say that the company was a limited one with two directors.

 

 

[dx100uk]

limited by guarantee to a set figure of typically £5k?

but no it cant follow him. and any assets now will not be those of the old business.

 

gas companies just cant 'send in bailiffs' nor remember any DCA used is NOT A BAILIFF.

 

 

[Buncrana]

Thanks for that DX.

 

I told them that I was sure that was the case but they wanted to make sure.

 

There weren't a lot of assets anyway has they had run the business right down with a view to retirement.

 

This bill really irked them due to what they had paid out, and compared to what they had previously paid.

 

They feel they've given them enough of their money.

 

I'll show them your post, and again, many thanks :)

[Ethel Street]

Your friend was one of the 2 directors? Had the directors been asked to give personal guarantees of the company's debts? That happens quite often with small businesses, although it's commoner with bank loans and the like than with supply of gas/electricity.

 

Worth checking that point. The usual way directors can get held personally liable for the debts of a Limited liability company is because they gave personal guarantees.

[dx100uk]

Not sure if business bgas use PG's, typically they mostly apply to credit/finance/trade supplies.

 

Certainly never had one myself in my business bgas supply in many years I used then 

 

Dx

[mantis shrimp]

The facts described may give grounds to take action seeking court orders to make the directors personally liable. It is possible that they might argue that a declaration was made on the application to strike off the company that should not have been made (that the company had no unpaid debts). 

 

But would you spend the money on a fairly complicated claim for this amount? I would not advise a client to do this.