Director Advice
What happens to directors of an insolvent company?
Directors of an insolvent company are protected from being held personally liable for company debts (limited liability), except in the event of misconduct.
The Difference between Secured and Unsecured Creditors
A defined hierarchy of creditors exists when a company enters insolvency, with secured creditors being at the top.
Understanding transactions at undervalue
A transaction at undervalue is when business assets are sold lower than their true value or for a loss.
Selling Company Assets – What Do Company Directors Need To Be Aware Of ?
If you wish to sell any of the assets of your limited company then there are a number of factors to take into consideration, especially regarding how these are treated for tax purposes and the differing treatments of both tangible and intangible business assets.
What is a ‘shadow director’? Are they liable in an insolvency procedure?
Understanding the role, liabilities and implications of a shadow (sometimes called silent) director, particularly in a company insolvency procedure.
Dissolving a company: eligibility, process, and objections
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 are approaching retirement and there is no one available to take over from you.
What is a limited liability partnership?
A limited liability partnership (LLP) is a legal business structure. Professional firms such as solicitors and accountants often choose to set up as limited liability partnerships, but the structure can also be a beneficial option for other types of business.
What is an insolvency practitioner and what are their duties?
An insolvency practitioner (IP) is licensed to act on behalf of companies and individuals when they are facing insolvency or acute financial distress.
What happens to company assets when a business is wound-up?
As part of the process of winding up a limited company, all of its assets will be liquidated, that is sold to realise as much money as possible.
Understanding a company director’s fiduciary duties and consequences of failing these duties
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 the best interests of the company.
I have taken too much out of my company in dividends – what can I do?
There are various ways for directors to take money out of their limited company. One of the most popular methods of drawing down funds is by issuing dividends to shareholders. Often taken in conjunction with a low basic salary paid through PAYE, dividends are one of the most cost-effective and tax-efficient ways of paying yourself as a company director.
What are the Advantages and Disadvantages of Debentures?
The reluctance of some banks in offering business loans has resulted in more directors lending to their own company.
What actions can creditors take against my company?
If you owe money to your creditors that you can’t repay, they can take legal action against you which could potentially lead to the closure of your business.
I cannot afford to pay my staff’s wages
If you’re unable to pay your staff then it’s also likely that you’re struggling to pay bills from suppliers, HMRC and other creditors when they become due, and at that point, your business could be technically insolvent.
