Wind-up company to defeat creditor

[accsvalue]

A customer intends to enforce a breach of contract clause against a small company. The company has reserves of €100,000. Can the company pay the two directors a bonus salary of €50,000 each in the meantime leaving no reserves, wind-up the company and leave the customer high and dry?

 

[Joe_90]

While the directors could vote a salary and apply to have the company struck off.

The creditor could object to the strike off. Then take an action (or threaten to take an action) against the company, which could include that the directors deliberately depleted the reserves at the expense of a creditor.

How would potential customers of the directors feel if their reputation is tarnished in such a manner. Short term gain for long term pain.

 

[Cervelo]

Is the customer right, was there a breach of contract if not fight it, if there was you are better off trying to sort it out with the customer rather then going down the road that might land you in hot water.