Understanding Corporate Insolvency: A Comprehensive Guide for CEOs
Facing corporate insolvency can be daunting, but it doesn’t automatically result in a company facing liquidation. Many businesses recover from being insolvent and the process itself can be a catalyst for restructuring, personnel change, and a new focus.
New law – Crackdown on directors who dissolve companies to evade debts
Rogue directors who dissolve their companies by striking off and avoid paying liabilities to staff, creditors and the taxpayer can now be disqualified from being a director.
Charities – What to do when they get into financial trouble
Charities are unusual in that they are not like a business owned by its shareholders. The trustees (or directors) of a charity are often acting in a voluntary capacity.
Debentures and how to use them to your advantage
A debenture is a legal mortgage taken on a limited company to secure a loan, an overdraft or invoice discounting. They are often used by banks and factoring companies.
Voluntary arrangement – what is it?
A voluntary arrangement is a legally binding agreement between an individual, a partnership or company and all its creditors.
What can go wrong for the directors on insolvency?
For most company directors insolvency is not something that they have experienced before.
What can employees claim in a liquidation?
We often see companies that have been established a long time that cannot afford to downsize and make staff redundant due to the costs.
Insolvency News – Autumn 2021 Newsletter
October 2021 Newsletter
New rules to tackle insolvent but struck off companies
From the 12th May the Insolvency Service has been given new power to investigate directors of dissolved companies and apply fines and bans from acting as a director. This new legislation gives the Insolvency Service the power to revisit dissolved companies that took Bounce Back Loans and Coronavirus Business Interruption Loans that have closed and […]
Who gets paid first when a company goes into liquidation?
David Kirk’s latest article published in the London Gazette can be found here: https://www.thegazette.co.uk/insolvency/content/103900 What is the order in which creditors get paid when a company is insolvent? David Kirk, a chartered accountant and licensed Insolvency Practitioner at Kirks, explains who gets paid first during liquidations and administrations. Which creditors get paid first when a company […]
