If I close or liquidate a limited company will I be personally liable for the tax debts?
The Quick Answer No. As a director or shareholder, you will not be personally liable for the tax debts of a limited company. However, there are some very exceptional circumstances where you can be. They are rare – see more below. The answer in more detail One key point of being a limited company is […]
Do I have to attend the creditors meeting?
The Quick Answer If you are a company director and are the proposed chairperson of the creditors meeting then yes you do have to attend the meeting. Normally all directors are asked to attend the creditors meeting (if there is one in person or online) to explain what happened and answer reasonable questions from creditors. […]
Help Me To Start Again (Phoenix)
The quick answer In some cases the right decision for a limited company will be to close and the directors to start up a new business even in the same trade or profession. This is known as a Phoenix There are two circumstances where a Phoenix may be the right option for the business: A […]
Our Club Is Insolvent What Should We Do?
The quick answer The first issue for a club or society to find out is who is liable for the debts? If the club/society is unincorporated (not a limited company) then the members are usually personally liable for all of the debts. If the club is run within a limited company then at least the […]
My School Is Insolvent – What Should I Do?
The quick answer If your school is losing money or has other problems affecting it then you need to consider your possible options. These are likely to include: Close and liquidate the school – this stops losses and lets the Government fund be called upon to pay employees. Find a new owner and transfer the […]
My Charity Is Insolvent – What Should I Do?
The quick answer Quite often the Trustees of a charity are not full time employees and unless they have proper day to day control of the finances then matters can quickly get out of control. The legal definition of insolvency is: a. The balance sheet test – of there being more liabilities than assets or, […]
The Twilight Zone – Should I Be Worried About Wrongful Or Fraudulent Trading?
The quick answer If you are a director of a limited company and it has passed the point of financial no return then you should be concerned if you allow the company to continue to trade. If the financial position gets worse you can be personally liable for the increased debts. In more detail Trading […]
Directors – How To Avoid Disqualification
The quick answer As a company director, if you know the financial position is getting worse it is your responsibility to do something about it. The longer it goes on the more chance you have of being disqualified as a director. Disqualification only applies if you were a director or shadow director. In more detail […]
General Queries
Understanding what insolvency means for your business can be daunting. Our FAQs section provides a range of answers to help you come to a decision. If you can not find an answer please email us.
