WA Workers Compensation Liability with Sale of Company?

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Suzy823

Active Member
20 August 2014
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Hi there

I am curious to know where legal liability lies when a company with an existing Workers Compensation claim is to be sold or wound up? I mention wound up as there is a possibility the new owners will have their own company name and take the business name only and shelve the existing company.
Many thanks in advance :)
 

Rod

Lawyer
LawTap Verified
27 May 2014
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969
2,894
If the new owners are only buying the business and not the company, liability stays with you. I'd also expect a sale agreement would have a clause saying the new owners are not liable for anything done by the business prior to them owning the business. Generally liability only gets transferred when the legal entity is bought/transferred.