What Happens to Employees When a Company Goes Into Administration?
When a company enters administration, it can be an unsettling and uncertain time for everyone involved, particularly employees. Questions about job security, pay, redundancy and future employment often arise immediately. Understanding what happens to staff during administration can help reduce uncertainty and provide clarity during what is already a difficult period. What is administration? Administration […]
Understanding Insolvency for a Company Limited by Guarantee
If you\’re unclear about what a company limited by guarantee (CLG) is, or what occurs if it becomes insolvent, this article will clarify these points. A CLG differs from a company limited by shares, where shareholder liability is limited to their capital investment. Governed by the UK\’s Companies Act 2006, CLGs include entities such as […]
How to tell staff you’re bankrupt
Even though COVID19 and Brexit are now officially in the past, their effects are far from over. In particular, high inflation continues to rumble on and looks set to do so for the foreseeable future. This means that many businesses are struggling and for some, the struggle is too much and bankruptcy is the only […]
Company insolvencies stay at worrying levels
The basic principle of company insolvency is much the same as personal insolvency. In short, it means a company is unable to make even the minimum payment on all of its various obligations. As with personal insolvency, there are different ways a business can go insolvent. All of them, however, create implications for company directors. […]