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The latest insights and trending topics from Begbies Traynor Group
What happens to directors of an insolvent company?
Directors of an insolvent company are protected from being held personally liable for company debts (limited liability), except in the event of misconduct.
Can a Winding Up Order be reversed?
What is a winding up order and can it be reversed once issued? A winding up order can be used by creditors to enforce payment of a debt by a company.
The Difference between Secured and Unsecured Creditors
A defined hierarchy of creditors exists when a company enters insolvency, with secured creditors being at the top.
Limited Company Cannot Afford To Pay Outstanding Creditors
If you cannot afford to pay creditors, seek a company restructuring solution or voluntary liquidation procedure to protect creditor interests
Understanding transactions at undervalue
A transaction at undervalue is when business assets are sold lower than their true value or for a loss.
What happens when a charity is insolvent?
A charity - just like any other company - has the potential to become insolvent. This occurs when it is unable to meet its outgoings as and when they fall due, or when liabilities outweigh its assets
What are the warning signs of company insolvency?
Insolvency is when a business is unable to meet financial obligations and repay debts. The cash flow and balance sheet tests can check for insolvency.
Selling Company Assets – What Do Company Directors Need To Be Aware Of ?
If you wish to sell any of the assets of your limited company then there are a number of factors to take into consideration, especially regarding how these are treated for tax purposes and the differing treatments of both tangible and intangible business assets.
What is a ‘shadow director’? Are they liable in an insolvency procedure?
Understanding the role, liabilities and implications of a shadow (sometimes called silent) director, particularly in a company insolvency procedure.
Dissolving a company: eligibility, process, and objections
There are many reasons why you might want to dissolve your limited company. Perhaps you experienced early success, but the market has now shifted, or maybe your business is still successful but you are approaching retirement and there is no one available to take over from you.
What is a limited liability partnership?
A limited liability partnership (LLP) is a legal business structure. Professional firms such as solicitors and accountants often choose to set up as limited liability partnerships, but the structure can also be a beneficial option for other types of business.
What is the Corporate Insolvency Test for a limited company?
The Corporate Insolvency Test refers to a method of determining a company’s ability to meet its liabilities as they fall due, and whether the total value of its liabilities exceeds assets.
Who gets paid first when a company goes into liquidation?
A preferential or preferred creditor reserves the right to first payment during an insolvent liquidation, as laid down by the Insolvency Act.
What is an insolvency practitioner and what are their duties?
An insolvency practitioner (IP) is licensed to act on behalf of companies and individuals when they are facing insolvency or acute financial distress.
