Capitalism 2 and Capitalism Lab Forum

In the real world if a directors company goes bankrupt, if he has funds then they can just set up a new company, and very often buy the assets of the old company out of insolvency. (Phoenixism) - this is certainly very common in the UK

So i would suggest the same applies, the "career" of the individual isn't tied to the holding company and can continue as long as the director has funds or can obtain funding.

May want to make it so the tax authority can make the director personally liable for the failed company, so if the director is not rich enough to settle the companies debts, or more likely a set amount of them, then the game would still end.

good idea i support

Also, side question, if a sub-company goes bankrupt, and has billions in negative equity, will it pass on to the holding co?

Kniz wrote: Mon Oct 12, 2020 10:32 pm Also, side question, if a sub-company goes bankrupt, and has billions in negative equity, will it pass on to the holding co?

I don't think so as its technically a seperate company.

Kniz wrote: Mon Oct 12, 2020 10:32 pm Also, side question, if a sub-company goes bankrupt, and has billions in negative equity, will it pass on to the holding co?

it doesn't here, directors frequently keep the company assets owned by the holding company, and then the trading subsidiary/separate company leases them from the main company, thus if the trading company goes bust, a new company is formed and the cycle repeats. While phoenix companies are somewhat controversial, it is legal as long as done correctly.

Sure HMRC and other government parties may take an interest sometimes, but not that often.