Legal question

[saad]

My contract is with ABC company trading as "XYZ Limited". Then there is another company with "ABC Limited" own by the same guy. Now "ABC Limited" have gone in to an administration. My contract is signed by ABC trading as XYZ Limited.

Does ABC limited company going in to administration effects my contract?

Hope I explained it clearly.

Cheers

[cojak]

What is the Companies House status of XYZ Ltd?

It might be an indication that your next invoice won't get paid, and that's what matters.

[saad]

XYZ Ltd is still trading and accounts are up to date on companies house website, however there is registration of charge and then satisfaction of charge last year, I have no idea what it is.

[northernladuk]

What is the Companies House status of XYZ Ltd?

It might be an indication that your next invoice won't get paid, and that's what matters.

Isn't XYZ just a trading name so isn't an entity in it's own right so won't be on companies house. It's all under the umbrella of ABC Ltd and if they are in trouble so are all the other trading names.

Here is a good explanation that actually uses your company and trading name to make it nice and simple

“Trading As” - Company and Business Names - TheCompanyWarehouse Blog - Company Formation and Business Startup Advice

[northernladuk]

XYZ Ltd is still trading and accounts are up to date on companies house website, however there is registration of charge and then satisfaction of charge last year, I have no idea what it is.

Have a look at the link.. The trading name is not registered. I'd say that's a different company so diligence is required here.

Because a trading name is not registered as a limited company, it is not properly protected. There is always the danger that at a later date someone else may register the trading name as a limited company and then stake their claim

[saad]

Isn't XYZ just a trading name so isn't an entity in it's own right so won't be on companies house. It's all under the umbrella of ABC Ltd and if they are in trouble so are all the other trading names.

Here is a good explanation that actually uses your company and trading name to make it nice and simple

“Trading As” - Company and Business Names - TheCompanyWarehouse Blog - Company Formation and Business Startup Advice

Actually XYZ Limited have different directors and ABC Limited director who I deal with is not in that list.. confusing.

I cannot disclose the names on public forum but I can PM if you want.

Technically my contract should be with ABC trading as XYZ Limited, No?

[northernladuk]

Actually XYZ Limited have different directors and ABC Limited director who I deal with is not in that list.. confusing.

It's not confusing. It's explained very clearly in the link I sent and the quote in my post after. I'll say it again though, the trading name is not a registered name. The article clearly states that you should check your trading name isn't registered so as not to cause confusion, which it is.

One thing that does worry me here. He shouldn't be trading as a LTD company. He can have any name he wants but it isn't an LTD. He's either messed up the understanding or he is deliberately being devious. This would worry me somewhat, coupled with the fact the main company is in trouble.

First of all, The Business Names Act 1985 imposes certain legal requirements on companies adopting this business technique. The most obvious point is the trading name cannot be the same as or similar to another company or business name in a way that might be confusing. In the same way that you cannot register a company name with the same name as a company that is already registered, you cannot register one company name (which is completely different) then use a trading name which is the same as a already registered (and trading) company name.

I cannot disclose the names on public forum but I can PM if you want.

I'll pass on that thanks.

Technically my contract should be with ABC trading as XYZ Limited, No?

Dunno but as I said I don't think XYZ should be a LTD and ABC is in administration. My alarm bells would be going off like crazy at this point, not trying to fix the wording of the entity.

I'd spend a bit of time on google to see if you can find anything similar explained there that might give you a clue.
I have no idea but why are you asking this when ABC is in administration?

[northernladuk]

Why not actually ring your client and ask for an explanation?

I'd be doing a credit check at some point as well.

[d000hg]

Why not actually ring your client and ask for an explanation?

WHS. It is perfectly reasonable to be worried and to express that concern, especially if the administration is public knowledge. Chase up the MD/director and if they seem shifty or won't take your call, be prepared to walk.

[northernladuk]

WHS. It is perfectly reasonable to be worried and to express that concern, especially if the administration is public knowledge. Chase up the MD/director and if they seem shifty or won't take your call, be prepared to walk.

^ This and most definitely the last line!