UK Companies, CAA Permissions, Insurance & Liquidation

[NickU]

Here's an interesting one for a bit of debate....

Recently a few people I know who have run limited companies have gone into voluntary liquidation. These people aren't in the UAS business, but it set me thinking.... many of us have our PfCO's and insurance registered in the name of the company.

So, if (hypothetically) that company was to go into liquidation, then they would no longer be covered for Commercial work either by the PfCO or by their insurance as presumably the company would cease to exist as a legal entity, or at best the rights for the Insurance/PfCO would pass to the liquidator? Presumably they would then have to go through the process of updating their Ops manual, reapplying to the CAA and obtaining new insurance....?

 

[imax]

Easiest way around it would be to have two separate companies. One that owns the UAS's and other equipment and has the PfCO and insurance registered to it. The second company is the one that does all the work. The first company solely provides services to the second company. Company 2 then contracts company 1 to undertake the work. If the business were to struggle and voluntary liquidation was the only solution, it would be company 2 that would fold, leaving company 1 with all the equipment, permissions and insurances to use for company 3, which would be set up like a phoenix from the ashes of company 2.

And if you can follow that, you're a smarter man than me!