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1. Ciri and Yennifer are both Directors of an online company selling custom jewellery.
SIlvershop Ltd. has been trading at a loss for 6 months and is relying on a floating charge to keep in business. Ciri has had a meeting with their accountant who has advised her that it is unlikely that the business can continue with their current income as the business is already £100,000 in debt with very little revenue. Despite this warning Ciri and Yennifer continue to take orders and payment for custom jewellery. 6 months later Silvershop Ltd. goes into liquidation. Oddly enough in the last six months Ciri has purchased a new Tesla and Yennifer has just put a 20% down payment on a snazzy £1,000,000 flat. SIlvershop Ltd. has over £300,000 of outstanding debts and very little assets to speak of. Advise the liquidator whether there are any legal actions to hold the Directors personally liable. Specifically advise whether the Directors have breached any duties. Advise the liquidator whether there are any legal actions to hold the Directors personally liable. Specifically advise whether the Directors have breached any duties.
2. Ali Heinz has been operating a custom motorbike shop in Edinburgh as a sole trader. He has approached your law firm to advise him on how to incorporate the company. He is already a very popular mechanic amongst the motorcycle circuit in Edinburgh and wants to build on his reputation by calling the business 'Heinz custom bikes'. Advise Ali as to the steps that must be taken to create his company, and whether there will be any legal issues with using his preferred name 'Heinz custom bikes'.
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