Tag: Liquidation
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 »
Personal liability for directors
This is the first in a series of three articles exploring how a director may incur personal liability in relation to their company. The second article will look at a director’s potential personal liability when a company enters into Liquidation or Administration, and the final article explores liability for a director that may occur even... 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 »
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 »
Court of Appeal confirms test to be applied when looking to set aside transactions defrauding creditors
When an individual or a company enters into a transaction at an undervalue the Insolvency Act 1986 has provisions (sections 238 and 339) which allow an officeholder, whether they be a trustee in bankruptcy of individual or a liquidator to the company, to overturn those transactions. In relation to the company the transaction must be... Read more »
It just got personal
For many self-employed people the attraction of setting up and trading through a limited company is that their personal affairs and the business affairs are kept separate. However when setting up a limited company and obtaining finance many directors find themselves being asked to sign a personal guarantee. Many sign that document without too much... Read more »