But if you go bust you can get things like wrongful trading
and personal liability for the directors.
She works in the corporate and commercial team, specialising in delivering a range of services that include restructuring and insolvency, security and banking documents, restructure options, asset and business sales, retention of title claims and wrongful trading
Having taken professional advice, it is clear that, to date, HEFF has acted in line with its fiduciary duties and in the best interests of the business; but to ensure that the company does not enter into wrongful trading
the only course of action open to us is to go into voluntary liquidation.
We arranged urgent correspondence with the bank within 24 hours, as we have now resolved that the business is in imminent territory of wrongful trading
If a shareholder is also a director, they face the risk that, upon the company's demise, they will be ordered to contribute to its assets under the wrongful trading
provision in section 214 of the Insolvency Act 1986.
Negotiating with landlords is key to staving off insolvency, although of course directors must take care to avoid wrongful trading
with regard to all of their creditors.
EXPERT J Patey "I guess there was a point of principle for them, but also by appointing a liquidator there are wider powers for that liquidator to investigate the affairs of the directors at the club prior to going into administration and potentially to pursue those directors for money if there has been wrongful trading
If directors have any concerns regarding the viability of the company and fear they are nearing insolvency then they must be aware of the repercussions of trading whilst insolvent, otherwise they will be guilty of wrongful trading
He said: "A ban of between two and 15 years can be imposed on a director for failing to meet his statutory duties and possibly being guilty of wrongful trading
The commission also will reflect on the development of a wrongful trading
rule, which is currently unknown in many E.
If found guilty of wrongful trading
he can be struck off from becoming a company director for five years.