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    Business Insolvency Advice

    Insolvency Advice for Directors

    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.