How to Top Up a "Limited Liability" With Even More Limitations (Dodging Accountability in the UK)
Some people call it a "shell game". Sometimes it's done for tax evasion purposes. Some reckless accountants have helped patent assertion mafias adopt similar tactics.
Patent trolls notoriously operate this way (e.g. lots of these in Eastern Texas), by means of creating a vast web of LLCs, sometimes one for each patent or for each patent lawsuit; patent trolls tend to be based around Texas, close to frequently friendly courts which they target (or bribe; there was a scandal related to this in the Federal Circuit as well), and many diagrams were drawn to show a chain of subsidiary/ownership relationships between shells.
Consider Sirius. I know it as a former insider. There are:
SIRIUS CORPORATION LIMITED (UK)
Inc. 17 September 1998
SIRIUS OPEN SOURCE LIMITED (UK)
Inc. 16 October 2017
Sirius Open Source Inc. (US)
Inc. 29 Jul 2019
That's the example of Sirius Open Source, which became very rogue in 2019: in a nutshell, there used to be one company, then it had difficulties and the CEO divorced (the wife was a Director), so he created two new shells, one in another country, even another continent.
Notice how everything is "limited", except the shell in the US ("Inc."), and the debt piles up in several shells. Some are overseas, just like the Microsofters who pay Brett Wilson LLP to attack me and my wife.
So he (the dodgy CEO) can spread the assets between shells, between countries, and between his own personal bank accounts.
This is about knowing accountability is a future problem, e.g. due to fraud and staff lawsuits. Both happened.
Watch what happened to Brett Wilson LLP in 2019: (almost as anyone can expect, always "Limited")
BRETT WILSON LLP (UK)
Inc. 4 August 2009
BRETT AND WILSON LIMITED (UK)
LLP Designated Member Appointed on 16 July 2019
This is the relationship:
Watch closely.
Imagine if that was the only remaining Director. It's not even a person and its bank account has just 2 pounds. Why did they create this shell entity almost exactly a decade after the company had been created? What happens if both Directors resign? █