What Happens if an Insolvent Company Owes Money to a Director?
It’s not uncommon for directors to lend funds to their own companies, often in the form of director’s loans. These loans provide essential financial support during startup phases or tough financial periods. However, when the company becomes insolvent, directors may face challenges in recouping their money. Here’s what happens when an insolvent company owes a […]
Understanding the Fiduciary Duties of Directors
Fiduciary duties encompass the responsibilities that directors owe to their companies, including obligations to customers, partners, shareholders, and staff. These duties are largely defined within the UK\’s Companies Act 2006, which sets out the expectations for directors. For specific advice tailored to your circumstances, it\’s wise to consult with a professional advisor. In this article, […]
How to make your business more attractive to lenders
The plight of small businesses trying to get finance is a standard topic on financial websites and in the printed press. While much of the discussion tends to revolve around what the government and industry bodies can do to make it easier for small businesses to get credit, it’s worth remembering that small businesses can […]
Understanding your responsibilities as a company director
The law can be a complex topic but sometimes it’s actually very clear and simple. If you are a company director you are legally required to stop trading the moment you become aware that the company of which you are a director is insolvent. There are no ifs, buts or maybes about this, there are, […]