It is crucial that business owners have access to specialist advice when they need it. Our team of Business Recovery Specialists understand what it is like to run a business and the stress that uncertain and unfamiliar problems can bring.
In this section we highlight the main problem areas that we come across and how we can help. Our long experience and expertise means we will be able to help with any situation a business owner might find themselves in.
Director Support Services
Where a Director is steering his/her business towards recovery from whatever issues are threatening it, careful steps should be taken to protect against any future claims if the plan goes wrong and the business becomes insolvent. It is important that the rationale and all key decisions are documented and evidenced to protect Directors against future criticism.
We can provide the detailed advice you require and discuss the key areas a Director needs to ensure are covered off and reviewed regularly, not only to protect against any future claims, but also to ensure the plan is working and on track, minimising the risk of insolvency.
Director Disqualification and Claims by Liquidators
When a company enters an insolvency process the actions of a Director come under scrutiny. A Director of a failed company can face claims or be called to account for their decisions and that is the time you will need specialist advice.
Directors may face a court action for disqualification from acting as a Director of a limited company. This is based on the conduct and decisions of a Director whilst in charge of a company that has gone into liquidation or administration. The consequences and costs of director disqualification action are serious and it is important that Directors get the right advice at an early stage to either defeat or mitigate the extent of claims.
Directors may also face financial claims by a liquidator for decisions or transactions in the run up to formal insolvency proceedings commencing. These claims can be complex and difficult to understand and again, access to timely specialist advice is essential to mitigate or dismiss these claims.
Our team of Business Recovery Specialists have extensive experience of dealing with the director disqualification issues from both sides and will be able to help manage these claims.
When insolvency is unavoidable, it is crucial for Directors to be fully informed of the options available and what lies ahead. Detailed and timely insolvency advice can be invaluable in understanding and dealing with issues such as:
- Dealing with the key stakeholders and creditors in a business ahead of a formal insolvency
- Whether a sale of the business, either to new owners or existing management is viable and if so, understanding the complex legal requirements to achieve a transparent and compliant outcome
- Preserving and protecting asset values for the benefit of creditors
- The impact of personal guarantees
As soon as a Director becomes concerned that the risk of insolvency might be more than just possible or even inevitable, getting advice quickly can provide valuable protection as well as preserving as many options as possible.
We have assisted on numerous occasions where a Director has decided to lend his/her own money to his/her business, sometimes to replace a funder and sometimes to provide a top-up to existing funding on a short or medium term basis. If you are about to lend to your own business, then we will work with you to ensure the same levels of security are in place for you as a bank would take if they were lending to a business. As a lender to the business, Directors are entitled to take security in the form of a debenture or other charge over the assets (limited companies only), just like a bank would.
In the event things do not work out and there is a future insolvency event, this security may help get some or all of your money back (depending on the level and nature of assets in your business) and provide control over the direction the insolvency process might take, particularly where your business is facing recovery action from other creditors.
This is a complex legal area and for any security to be effective, it has to be put in place correctly and with transparency. If you are thinking about lending to your own business, please call us to discuss how we can help protect your loan.
Act Now if you or a Client Needs Advice on Personal and Business Protection
For Help and Advice on protecting your client’s business, and for more information about our business recovery and insolvency services please contact us or call us on 0121 200 2962 for a free initial chat.