Phoenix company
A new company that carries on the business or uses assets of a failed company. This can be legitimate if handled properly, but strict rules apply to assets, names and director conduct.
Related terms
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Re-use of company name
Using the same or a similar name after a company enters insolvent liquidation. Directors can face restrictions and personal liability if statutory rules are breached.
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Prohibited company name
A company name that a director of an insolvent company may be restricted from using under insolvency law, particularly where it is the same as or similar to the failed company’s name.
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Fiduciary duty
A duty to act loyally and properly in another party’s interests, such as duties owed by company directors to the company.
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