Director Advice
Can directors be held liable for company debts?
In the main, the limited company legal structure protects directors from personal liability in relation to business debts.
Director disputes – when one wants to liquidate and one doesn’t – what next?
If you are in serious dispute with a co-director – maybe you have strongly disagreed on a matter of business, for example, or are a divorcing couple - you may want to liquidate the company and move on.
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.
My business is suffering due to depression/ill health
If the stresses and strains of running a successful company have taken their toll on your physical or mental health, it might be time to step back.
Understanding commercial leases and personal guarantees
Given the complexity of many commercial leases, it is vital that you understand your rights when it comes to signing a personal guarantee for a lease. The ramifications of failing to meet lease repayments are serious, but knowing the consequences to you personally if your business starts to struggle financially, could help to protect your home and other assets.
Joint and Several Liability Notices: Directors of insolvent companies face greater personal exposure to tax liabilities
While company directors are generally protected by limited liability, recovery powers granted to HMRC in the Finance Act 2020 mean directors can face greater personal liability for tax debts held by the company in the event of insolvency.
Need to close my personal service company due to IR35
Company closure options for Personal Service Company contractors hit by the IR35 reform, including liquidation options for solvent and insolvent companies.
Can I resign as a company director?
If you are thinking of resigning as a company director, there are specific steps you and the company must take.
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.
What happens to debts when a company is dissolved?
Dissolution is not an appropriate solution for striking off (dissolving) a company with debts. Liquidation is recommended for several important reasons.
What are the signs of business failure?
When a business fails there are early warning signs to look out for that can help you deal with the matter before it becomes too damaging. Lack of cash often the first indication, and this may materialise as an inability to pay the bills on time.
What is a Stay of Execution for a limited company?
When a limited company fails to pay a County Court Judgment (CCJ), the creditor can seek enforcement assistance from High Court Enforcement Officers (HCEOs), also known as bailiffs.
Understanding transactions at undervalue
A transaction at undervalue is when business assets are sold lower than their true value or for a loss.
What is the Difference Between Fraudulent and Wrongful Trading?
What is the Difference Between Fraudulent and Wrongful Trading? Simple guide to understanding the differences to help you choose the right option
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.