Case Study Example
An owner of a whisky investment business was found guilty of fraud. A company was established with an issued share capital of 100 ordinary shares of £1 each. It was engaged in marketing to the general public investment opportunities, principally in single malt whisky, but also in champagne. The company went into liquidation a few years later with debts of over £ ½ million.
The founder immediately started to trade under another company which had remained dormant until then and was similarly named. This company engaged in the same activity, had the same supplier and client list. In effect there was no change, certainly in the mind of the investors. The "phoenix" company ceased to trade the year after. The marketing activities throughout the whole period of operation brought in over £4 million from around two thousand investors.
