They ll have to pay them back one day though.....
They won’t. Just dissolve the limited company and the debt goes with it.
Thats assuming there is no element of fraud involved.
Of course. It’s obviously highly immoral, but also not illegal.
Sorry, whats not illegal ?
Dissolving a failed ltd company.
(ie the topic of conversation?)
To dissolve a Ltd Company one would have to inform creditors and they would have to agree. If they don't agree then it won't get dissolved. There is other option like liquidation but they are so expensive route to go down with no guarantee of getting rid of the debt. I'd suggest it would be very difficult to shake off the debt and not so easy as you just mentioned. And i specifically mentioned fraud as a Director is bound by conduct rules. If a Director took monies with no way it was reflected that they could be repaid, it may well be the case that the Director is not personally liable to repay the "bounce back loan" but he will be liable for his conduct. And that will practically amount to the same thing.