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Last year saw a surge in corporate insolvencies across England and Wales, with the Insolvency Service documenting a total of 25,158 cases, marking the most recorded since 1993. The breakdown of these figures reveals 20,577 instances of voluntary liquidations – a 9% increase from the previous year and the highest figure since 1960 – along […]
Directors have a legal duty to ensure that their company is not trading whilst insolvent. But what does “trading insolvent” really mean, and how can it be correctly identified? In this article we provide an overview of the insolvency tests that can be applied to help company directors make an appropriate assessment of the situation. […]
If a company is insolvent and needs to be closed then typically the directors and shareholders will decide to take the company into a creditors voluntary liquidation (CVL). Otherwise known simply as “voluntary liquidation” this is where a licenced insolvency practitioner will be appointed as Liquidator (following resolutions passed firstly by shareholders and then by creditors) over the company. […]
We’re often asked about the difference between Liquidation and Administration and when one should be used over the other. Here we cover the main differences between the two formal insolvency procedures, […]
How are funds distributed in a Liquidation and who is at the top of the pecking order? In this month’s article we discuss the strict hierarchy within the Insolvency Act, which determines the order that creditors will be paid during liquidation. […]
When it comes to a company entering into liquidation there are some important differences between the compulsory and voluntary routes, not least for the directors of the company. […]
Directors have a legal duty to ensure that their company is not trading whilst insolvent. But what does “trading whilst insolvent” really mean and how can it correctly be identified? This article provides an overview of the insolvency tests that can be applied to help company directors make an appropriate assessment of the situation. […]
