Mobile Phone Contract and dissolving company

[Old Greg]

Surely when you dissolve the company, you should pay the liabilities before distributing any funds left to shareholders? Or am I wrong?

[TheFaQQer]

Having said that, if the contract is in the Limited Company name, then once the Limited Company has ceased to exist, the phone company will have no one to sue.

Robert Stell

If you act negligently as a director, then they can sue you personally.

[gakhan]

Thanks a lot guys for your replies.

Your replies are very helpful and for starter I have asked O2 to reduced my line rental to £15 a month. However, they didn't provide me the copy of the contranct but as 'Wanderer' suggested, I am going to transfer the contract from company to personal use.
You guys have been brilliant, thanks a lot for all your suggestions.

GAKhan

[SueEllen]

You are lucky your with O2 as if you were with 3* you would have no chance to change the phone to your personal name. You probably also could transfer it to someone else for the remainder of the contract.

*I ******* hate that company with a passion.

[RobertStell]

Mobile phone contract

Hello Gakhan

Without actually seeing the contract, I can tell you it's highly likely that you will have to pay to get out of it.
Having said that, if the contract is in the Limited Company name, then once the Limited Company has ceased to exist, the phone company will have no one to sue.
As you rightly point out, they may have made you gurantee the contract personally, although that would be highly unusual.
Options are 1) find the original contract or ask for a copy (as is your right) 2) close the bank account as planned, and wait to see what happens.

Robert Stell

Dear fellow users
This is my first post to this forum. I am in a process of dissolving my LTD company and the only business’ direct debit I have is for a business mobile phone’s line rental. The mobile phone is on my company’s name but the address on the bill appears as under;

ABC company
My name
Company’s address (which is also my home address)

After dissolving the LTD company, I want to terminate my business mobile contract with O2 that still has one year left to end. Can someone kindly advise me that would I have to pay for the remaining one year line rental to the mobile phone company or not. Unfortunately, I couldn’t find the initial mobile phone contract to confirm if it has ‘personal guarantee’ mentioned in it or not that makes me liable for the payment of remaining line rental. I have asked O2 to send me the copy but the referred me to their website to check the general terms and conditions, which don’t have any mention of personal guarantee.

I would be grateful if someone could reply to my post ASAP.

Many thanks
GAKhan

[northernladuk]

They will have some standard forms that will change the contract to you and the direct debit to your personal account and the the contract will just continue as normal.

If you want to cancel the contract outright then you will get charged a hefy cancellation fee.

[Wanderer]

I am in a process of dissolving my LTD company and the only business’ direct debit I have is for a business mobile phone’s line rental. The mobile phone is on my company’s name

Did you ask them how much it would cost to terminate the contract? You might be able to switch to a £15/month tariff or cut a deal where they will offer you a fixed deal to terminate the contract (not necessarily as much as 12 x your current rental). If you try to dissolve the company while you still have creditors then they are within their rights to object to the dissolution which would delay the whole process.

Do you still want the phone? Perhaps you could transfer it into your own name and keep using it. I'm sure o2 would be happy to do that - they don't want to lose customers.

To be honest, I wouldn't go defaulting on the contract for the sake of 150-200 quid because they might try and mark it against you personally as company director or your address and cause a load of aggro on your credit history. You are probably better off to just settle it up and get on with your life.

[gakhan]

Dear fellow users
This is my first post to this forum. I am in a process of dissolving my LTD company and the only business’ direct debit I have is for a business mobile phone’s line rental. The mobile phone is on my company’s name but the address on the bill appears as under;

ABC company
My name
Company’s address (which is also my home address)

After dissolving the LTD company, I want to terminate my business mobile contract with O2 that still has one year left to end. Can someone kindly advise me that would I have to pay for the remaining one year line rental to the mobile phone company or not. Unfortunately, I couldn’t find the initial mobile phone contract to confirm if it has ‘personal guarantee’ mentioned in it or not that makes me liable for the payment of remaining line rental. I have asked O2 to send me the copy but the referred me to their website to check the general terms and conditions, which don’t have any mention of personal guarantee.

I would be grateful if someone could reply to my post ASAP.

Many thanks
GAKhan