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When a company becomes insolvent, directors need to take appropriate action to deal with the situation, which is usually to cease trading and close the company down. It won’t be possible to simply dissolve the company at Companies House using a voluntary strike-off application, since this is likely to be opposed by creditors of the […]
The Company Strike Off process is a way of formally dissolving a company, this is also referred to as Company Dissolution. A voluntary company strike off process can be initiated by the directors of the company, or a compulsory strike off by Companies House. Once a company has been struck off, it no longer exists […]
In the UK, directors have a responsibility to manage their companies properly and watch out for any signs of financial trouble. If they fail in this duty, they may be held personally liable for any debts or losses caused by their negligence. In addition to this criminal liability, a director can be disqualified from working […]
The use, or misuse, of bounce back loans has been a hot topic of late with vastly different positions being taken by directors. Some have been overly cautious about taking out any bounce back loan monies as personal income, whilst others have withdrawn large sums for personal benefit without any thought for the consequences. If […]
What is a Creditors’ Voluntary Liquidation? Creditors’ Voluntary Liquidation (CVL) is the process where the Directors of an insolvent company can voluntarily take steps to wind up the company. The Directors call a meeting of the company’s shareholders to consider resolutions to wind up the company and decide on a decision procedure for creditors to […]
Independent Business Reviews (IBRs) are often requested by a lending bank when a company looks to be in some form of financial difficulty. They can be viewed by directors as a painful, expensive exercise enforced by the Bank and which can lead to further financial problems. However, there can be a benefit in directors […]
There are 2 ways a company can go into liquidation. The first and most common way is voluntarily, by the directors and shareholders – this is known as a Creditors’ Voluntary Liquidation (CVL). The second way is a compulsory liquidation and is when a creditor or shareholder files a petition at court to wind the […]
Administration is a formal insolvency process which places a company under the control of an Insolvency Practitioner and the protection of the court. A ‘Notice of Intention to Appoint’ or ‘Notice of Appointment’ can be filed at court by the Director(s), qualifying floating charge holder, a company, or creditor to commence the process of Administration. […]
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. […]
