When financial problems arise, or the prospect of insolvency, however remote, they can threaten the decisions and judgement of Company Directors which means they come under a spotlight.
Directors need to decide whether the company should stop trading and if so, when. Their duties will also change, to include a duty to preserve the status quo for the benefit of creditors and shareholders until the company’s future is determined.
If there is a real risk that creditors will not be paid and Directors allow the company to continue, they may leave themselves open to claims of wrongful trading, leading to possible disqualification and/or personal liability.
The courts place great reliance on Directors who have consulted with their accountants or solicitors, but even more so when they obtain competent, independent advice from a licensed Insolvency Practitioner.
It is essential that Directors are making the right decisions and that these decisions are properly recorded. At Poppleton & Appleby, our team of qualified Business Recovery Specialists can help Directors with common-sense measures and advice to create a framework for managing a company in difficulty.
Our advice can ensure Directors avoid criticism at a later stage and can be crucial in keeping control over the decision-making process and avoid lenders, HMRC, landlords or creditors influencing the outcome.
For more information about our business recovery and insolvency services please contact us.