September 22nd 2017
If you’re a company director then circumstances can arise in which you decide to offer personal guarantees in support of a loan application or your pursuit of a line of credit. Where these guarantee…
June 19th 2017
The question of whether and under what circumstances a director might find themselves liable for their company’s debts upon entering insolvency can quickly become a very pressing concern. For obviou…
Overdrawn directors’ loan accounts can come to be a real cause for concern; particularly in the context of a company entering insolvency. Therefore it can help to understand as clearly as possible t…
June 13th 2017
Solvent liquidations are a means of reducing your tax levels as an individual if you have an overdrawn director’s loan account (DLA). The process is entirely in line with relevant legislation and ca…
August 16th 2017
Releasing capital from a solvent company is a relatively common process in the UK and is essentially a means of raising cash from a business that has, for whatever reason, outlived its worth. In these…
June 21st 2017
If your company is insolvent and you are unsure how to progress, there are a range of options that could save the business from closure. Some involve informal negotiations with creditors and others ar…
July 24th 2017
As a formal alternative to bankruptcy, an Individual Voluntary Arrangement is more flexible in that it allows a company director to remain in their position. Equally, you can be appointed as a new co…
July 13th 2017
We are often asked whether Administration and Liquidation are the same. Although they are both formal insolvency procedures, there are significant differences between the two, both in objective and ap…
August 9th 2017
The path to a successful and profitable business is invariably littered with obstacles, the majority of which tend to be financial. There are common recurring pressures, however, that can be dealt wit…
August 10th 2017
If you are experiencing business cash flow problems, you will want to act quickly to redress the position. Whatever the reasons for your cash problems, here are ten tips to help you regain control. …
If you fear that your company has reached an insolvent position, you must be very careful to cease trading immediately. Insolvency is when you are unable to pay bills as they fall due, or when the tot…
April 27th 2017
A defined hierarchy of creditors exists when a company enters insolvency, with secured creditors being at the top. A secured creditor is generally a bank or other asset-based lender that holds a fixed…
April 14th 2017
Company directorship brings with it a legal obligation to act in a ‘proper’ manner when undertaking company business. If you are found to have acted improperly, you may face disqualification as we…
April 19th 2017
Being refused finance or having a loan called in by your bank is not unusual these days. Traditional lending institutions have become extremely risk-averse since the 2007 economic downturn, and seekin…
July 31st 2017
It is commonly the case that franchise agreements terminate automatically when a franchisee enters insolvency. Agreements vary, but whatever the situation, the franchisor will want to recoup any arrears of fees and charges, or other payments due under the
If you are owed money by an insolvent company, your options vary according to the level of debt, and the lengths you are prepared to go to recover your money. The most drastic creditor action you can …
April 20th 2017
Hiring an accountant to complete your company accounts and tax returns not only frees up time, it negates the need to employ high-level finance staff in-house. Most of the time this arrangement will w…
April 24th 2017
The pressure placed on government to reduce business rates has led to a range of reliefs and exemptions being made available, with some local authorities also offering discretionary reliefs to local b…
March 31st 2017
Personal Guarantee Insurance (PGI) is designed to offer some financial protection if you have provided a personal guarantee for company loans. Intended to offset your personal financial risk by provid…
When deciding on the best course of action for your insolvent company, choosing between pre pack administration versus Company Voluntary Arrangement (CVA) can be difficult without first identifyi…
Pre pack administration offers the opportunity to start a new limited company without pressure of debt. This is a popular solution for insolvent companies, with specific requirements in place to …
Dividends are unlawful when insufficient profits exist within the company to cover the amounts paid. Rules regarding the payment of dividends are laid down in the Companies Act, 2006 which states, &ld…
When a company cannot pay its VAT liability on time, a penalty is applied by HMRC. Unfortunately, this only compounds an unstable financial position, so it is crucial for directors to take action quic…
The Big Bang Theory is a very popular and successful American sitcom. ‘Stuart Bloom’ is the character who owns The Comic Center of Pasadena, a comic book store the main characters often visit. Th…
Given the complexity of many commercial leases, it is vital that you understand your rights when it comes to signing a personal guarantee for a lease. The ramifications of failing to meet lease repaym…
The reluctance of some banks in offering business loans, as well as a potentially onerous administrative procedure, has resulted in more directors lending to their own company. Without the security of…
The Register of People with Significant control was introduced as part of the Small Business and Employment Act, 2015, after concerns were raised about corporate transparency at the 2013 G8 Summit. Al…
Failing to pay your creditors leaves you open to various forms of legal action, which can be taken through the County Court or High Court. These are civil rather than criminal courts, and as communica…
It only takes a downturn in the market or the loss of a key customer to dramatically change the fortunes of previously successful companies. In fact, the threat of insolvency hangs over every business…
Your fiduciary duties as a director reflect a relationship of trust and loyalty between yourself, the company, its members, and stakeholders. The expectation is that you will act in good faith, and in…
Company directors take on specific fiduciary, common law and statutory duties and responsibilities when they are appointed, and their status is registered at Companies House. If you are not officially…
It isn’t common knowledge but directors may have a claim for redundancy when their company enters liquidation. They must be able to prove their status as an employee of the company, and fulfil more …
The revaluation of business rates that is due to take effect from 1st April 2017, will mean a substantial increase in liability for some companies already in financial difficulty. It could see a worse…
There are many reasons why you might want to dissolve your limited company. Perhaps you experienced early success, but the market has now shifted, or maybe your business is still successful but you ar…
Everyone gets ill from time to time and a couple of days away from work to rest and recover is often just what the doctor ordered. Occasional sick days are something most companies expect, and account…
Employers have a duty to ensure the health and safety of their employees and members of the general public when they are on business premises. The Health and Safety Executive (HSE) bring prosecutions …
Even when your company is experiencing financial distress, it can be difficult to know when to seek professional help. It is a natural reaction to want to trade your way out of difficulty, but the soo…
Poor cash flow can have a highly detrimental impact on a company. What may appear to be a temporary problem that is easily resolved, can quickly result in the company facing a winding up petition from…
Carrying out due diligence prior to acquiring a business allows you to assess its current financial and operational status, and evaluate the company’s likely success in the future. Taking due dilige…
Company directors can feel under enormous pressure from lenders if their company defaults on loan repayments. Threats of legal action often ensue, including County Court Judgements (CCJs), the seizure…
When your business has cash flow problems it can be difficult to decide on the best course of action, but one of the main initial considerations is whether or not the company is actually solvent. If n…
HMRC provides a degree of assistance to some companies in arrears. It is not an uncommon event for a company to default on its tax liabilities, and if your business has become delinquent on VAT and PA…
September 13th 2017
Under company law you can be a director of multiple enterprises, regardless of whether one company is in liquidation....
If you are in serious dispute with a co-director – maybe you have strongly disagreed on a matter of business, for example, or are a divorcing couple - you may want to liquidate the company and move on.
The Companies Act, 2006, sets out the general duties of company directors in the UK. If you breach these duties the consequences can be severe, with the company, its creditors, or shareholders having the right to pursue you on a personal level for any los
September 27th 2017
It’s important to find the right accountant or auditor for your business. Their input can save you time and money, and make a huge difference to your overall success.
October 12th 2017
In the main, the limited company legal structure protects directors from personal liability in relation to business debts.
October 25th 2017
Under the Companies Act, 2006, directors can be held personally liable for losses caused to creditors where ’misfeasance’ has occurred.
February 1st 2018
If a company has been voluntarily dissolved and removed from the register at Companies House, then it can be restored, but only by a court order. The restoration by court order process can be lengthy,…
February 5th 2018
There are many reasons why you, as a company director, may wish to sell or otherwise dispose of, some or all of the assets of your company. It may be that they are simply no longer required, or your m…
March 2nd 2018
When a limited company fails to pay a County Court Judgment (CCJ), the creditor can seek enforcement assistance from High Court Enforcement Officers (HCEOs), also known as bailiffs.
April 24th 2018
It is no secret that company liquidation, such as a CVL, has a price tag attached to it. For a company in financial distress meeting this cost may seem out of reach, after all the reason you are looking to liquidate your company may well be due to mountin
April 30th 2018
Running a recruitment agency can be an extremely rewarding experience, both on a personal and a financial level. However, should business take a turn for the worse, problems can quickly mount up and your cash flow can end up suffering.
May 9th 2018
Overtrading is a serious threat to growing businesses, and can quickly cause once profitable companies to enter insolvency if not anticipated. The situation typically occurs when businesses grow at a rapid rate.
May 8th 2018
An Individual Voluntary Arrangement (IVA) is a common debt recovery process in England, Scotland and Wales. It offers a number of benefits to those trying to escape unmanageable debt, but IVAs aren’t the only answer available to people experiencing seriou
May 20th 2018
If transactions at undervalue are entered into by a company that later becomes insolvent, it can result in serious repercussions for company directors who may be viewed as deliberately diverting assets away from creditors.
May 22nd 2018
Taking on too much debt can restrict a company’s operational flexibility, leaving it open to financial problems should revenues drop. But there is a ‘healthy’ level of debt, or ‘gearing,’ that allows companies to fulfil their strategic plans and thrive in
June 3rd 2018
It is possible to officially register a company name at Companies House, but then use one or more ‘trading names’ as required by yourself or your organisation. Some companies trade under different…
June 24th 2018
If all creditors cannot be paid in full, the appointed insolvency practitioner will have to ensure that creditors are paid according to a designated hierarchy.
June 2nd 2018
You may be surprised to know that it is not necessarily your technology or the systems that you have in place that allow in hackers and data thieves. It is common for members of staff to be the weakes…
June 26th 2018
It can be surprisingly easy for a profitable company to find themselves sliding towards a state of business distress. Often this may not have anything to do with your running of the business, but instead down to external factors beyond your control.
July 30th 2018
At some point during the life of their company, many directors will find themselves using their own personal finances to help the business.
November 14th 2018
When a company becomes insolvent but carries on trading, there’s a chance that directors could be accused of trading illegally if the company subsequently has to be liquidated.
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