As the cost of living crisis continues with no sign of it ending in the near future, increasing numbers of businesses are facing company insolvency. Each week in the news, there are headlines of companies of varying size and sectors going into administration, so it’s important for directors to be aware when their business is…
Category: Insolvency
What Debts Could Directors Involved in a Company Using a Prohibited Name Be Liable For?
Defined under Section 216 of the Insolvency Act 1986, a Prohibited Name is a company name that is either identical to, or very similar to that of an insolvent company, suggesting an association with that company. Under Section 216, other than in certain circumstances, anyone who has been a director of an insolvent company within…
Business Insolvency: The Options for Businesses Facing Financial Difficulties
If your business is insolvent or experiencing financial difficulties, this doesn’t necessarily mean the end. Financial difficulties can be part and parcel of running a business, so if you are concerned about your financial position, it’s important to seek advice from a licensed insolvency practitioner. Liquidation or the winding up of your company is not…
Protecting Your Business from Insolvent Companies
The effects of Brexit and Covid-19 on the UK economy, amongst a range of other factors, mean that many businesses are experiencing financial difficulties, and for a large percentage, insolvency is a possibility that they must navigate. However, as well as facing their own financial struggles, UK businesses are increasingly likely to work or deal…
Business Insolvency – What to do if Your Business is Insolvent?
It’s quite common for people to ask what business insolvency really means. The simple explanation is that a business is insolvent when they can no longer afford to pay their debts as they are due, or if their liabilities exceed their assets. However, as there is so much confusion around the term, it is not…