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, […]
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 […]
A Guide to Business Recovery Options For Insolvent Businesses
If your company is facing financial difficulties, it\’s crucial to have a clear understanding of the various business recovery options available. Should your business require urgent support, it is advisable to contact experienced insolvency practitioners without delay. In 2023, the total number of company insolvencies reached 25,158, the highest since 1993 and a 14% increase […]
Cash Flow Challenges
Navigating through cash flow challenges is a dynamic and ongoing process for any business. Here’s a strategic seven-point plan to help you maintain equilibrium in your company’s finances and ensure continuous growth. Forecasting: Keep your cash flow forecast current to identify potential issues swiftly. This forward-looking approach is crucial for proactive management. Cost-cutting: Get creative […]
What Happens If Your Employer Becomes Insolvent?
When Brexit was announced, some businesses feared for their future. Then COVID19 hit and led to some businesses closing permanently. Now, the UK is working its way towards a post-Brexit, post-COVID future while the world is living through interesting times. This means that very few businesses can be considered truly safe from insolvency. With that […]
What is the Insolvency act 1986?
The Insolvency Act 1986 stands as a cornerstone of UK insolvency law, providing a structured approach for both business and personal insolvency matters. Here\’s a concise overview of what the Act entails: Company Insolvency: The Act outlines procedures for company insolvency, including CVAs, which offer an alternative to liquidation, allowing a business to continue operating […]
Reflecting on Debt and Insolvency in the UK: A 2023 Overview
Introduction The past year has been pivotal for the landscape of debt and insolvency in the UK. With the economy still rebounding from the effects of the pandemic and adjusting to new global challenges, 2023 witnessed significant developments in these areas. This article provides a comprehensive review of the trends, changes, and implications in the […]
Scheme of Arrangement
A Scheme of Arrangement can be a lifeline for companies aiming to restructure debt whilst maintaining their trading activities. It\’s an alternative to a Company Voluntary Arrangement (CVA) and different from other debt solutions like a Creditors’ Voluntary Liquidation (CVL) or administration. A Scheme of Arrangement is a court-approved process under the Companies Act 2006, […]
Dissolving a company with debts
Dissolving a company with outstanding debts is a topic often surrounded by confusion and concern. The formal process of closing a company, known as dissolution, involves removing the company from the Companies House register, either through a strike-off application or post-liquidation or administration. Legal Obligations to Creditors It\’s important to understand that creditors must be […]
Will Interest Rates Cause A Surge In Insolvencies?
It\’s been observed that there\’s a rising trend in the number of insolvencies, with experts predicting it may continue in the foreseeable future, primarily due to the Bank of England\’s increased interest rates. In September, we noted a 17% increase in insolvencies from the previous year, totalling 1,967 company insolvencies. This figure surpasses levels observed […]