Tag: insolvency
Directors Personal Liability – A revisit
When a company enters into an insolvency procedure there is a ripple effect, suppliers can be owed money causing them cash flow issues, which in turn effects their ability to pay their suppliers and so on down the chain. Likewise those who have paid for goods or services may not receive them. The effect on... Read more »
What to do and what not to do if you are a director of a Company in Financial Trouble
The Government’s statistics for company insolvencies in the period July 2023 to September 2023 showed that in the second and third quarter they were at the highest level since the second quarter of 2009, and the uptick appears to continue. Directors of companies facing financial trouble need to be aware that if they are found... Read more »
Re-use of a prohibited name – A warning for Directors
Re-use of a Prohibited Name leads to automatic liability under section 217 Insolvency Act 1986 Subject to certain exceptions, a director of a company that has entered into an insolvent liquidation is restricted from being involved in the management of a company with the same, or similar name to the company that entered liquidation. This... Read more »
Directors cannot re-write history
Directors of companies need to keep the above statement in mind following the decision in Bass v Buchanan [2021] EWHC 2740 (Ch). Following the company entering into a Creditors’ Voluntary Liquidation in December 2014 the liquidators conducted a review of the books and records of the company and brought proceedings against the director in relation... Read more »
What happens when your company does not bounce back after receiving the Bounce Back Loan?
In early 2020 when the Coronavirus Pandemic hit the UK the Government brought in a series of measures to help businesses survive. One key measure was the Bounce Back Loan Scheme. The scheme was introduced in March 2020 allowing small and medium businesses to borrow up to 25% of annual turnover, capped at a maximum... Read more »
Winding Up Petitions – The new provisions
As part of the Government’s loosening of the legislation introduced as a result of the coronavirus pandemic, the temporary provisions put in place to give breathing space to companies from the threat of a winding up petition expire 30 September 2021. These provisions were within the Corporate Insolvency and Governance Act 2020 (“CIGA”) and designed... Read more »
Business Disputes
Hopefully on a day-to-day business, your business has few – if any – ongoing or threatened disputes. However they can erupt suddenly and in any area of your business. But did you know that taking sound legal advice at an early stage can be invaluable? Not only can it prevent an issue becoming a full-blown... Read more »
Insolvency continues to be a worry for companies and individuals
The demise of Thomas Cook was a reminder that businesses and individuals are still finding the current economic situation difficult. The latest figures from The Insolvency Service, show that 4,321 companies entered insolvency between April and June 2019, a 2.6% increase on the first quarter of the year and in percentage terms the figure is... Read more »
The Landlord’s unwanted Christmas gift – Tenant Insolvency
Landlords who are paid quarterly are currently wondering whether 25 December will bring them an unwanted Christmas gift, their tenant’s insolvency. Any business which is in financial trouble will be looking to see if they can afford the next quarter rent payment. They may have already taken advice and been told to hold off liquidation... Read more »
A landlord’s guide to dealing with an insolvent tenant – Part 2: Where a tenant is an individual
Where a tenant is an individual and it fails to pay the rent due under a lease a landlord may: Exercise commercial rent arrears recovery (CRAR) for the rent against certain goods of the tenant at the premises. Sue for the rent by court action. Forfeit the lease, either by court action or by peaceable... Read more »