I provide simple, practical advice to help you
Insolvency legislation is complicated, as is any other area of law.
Many directors do not realise that what happens in the period leading up to the insolvency of a company can have a major impact on them personally. The “limited liability” for directors of a company ceases if the company has become insolvent and continues to trade. This could lead to severe personal liability for you, the directors.
Creditors of a company may also become disadvantaged once a company they are trading with becomes insolvent
There are times when you may feel that “something’s just not quite right” with your business but can’t identify what the problem may be, or how to deal with it. An independent business review can help. I carry out a thorough and objective assessment of what’s going on and provide a realistic picture of the business.
From the point of view of the directors
This includes clarifying the current (and potential future) problems and what impact they are having on both current and ongoing trading and even on your own personal position. Clarifying and simplifying the picture means you can decide how to deal with things.
Alternatively, you may be doing so well that the business requires additional working capital to continue expanding. A review can be used as part of a request for funding (probably to a Bank) and will often result in the lender gaining comfort that they can lend on a satisfactory basis and less time is taken in the process of getting the funding you need.
From the point of view of a lender
A lender may need an independent review of the business in order to satisfy itself that any current or future lending decisions are based on up to date, accurate information and that the security offered by the company is sufficient to allow such lending. The review often provides a large measure of comfort to the lender that it’s making a good lending decision and may mean the difference between the business obtaining the lending it requires or not.
Many directors will not be aware of the pitfalls that appear once a company becomes insolvent. In particular you probably don’t realise that once the company is insolvent, you can become personally liable for the company’s debts in some instances, as the limited liability status of the company no longer applies.
A Liquidator, Administrator or Administrative Receiver will investigate the affairs of the company and the conduct of the directors (even past ones!). If they are found to have done something wrong, action may then be taken by the Insolvency Service against a director (or shadow director) to have them disqualified from acting as a director.
This disqualification period can be from between 2 and 15 years and prevents them from taking part in the “…formation, promotion or management of a company…” for this period. Acting as a disqualified director could then result in personal liability as well as civil and criminal proceedings being instituted against the individual.
As I have acted as Liquidator, Administrator etc, I regularly report on the conduct of directors. I am therefore uniquely in a position to advise you on what steps you should be taking to protect yourself in the period leading up to the insolvency of your company as I have a clear understanding of what actions could be taken against you!
I can also assist you with dealing with any personal guarantees or other personal liabilities you may be facing if the company becomes insolvent.
Creditors have many rights in respect of being able to take action to ensure they are paid the money they are owed. I am in a position to advise creditors on what steps or actions they should be taking to maximise their chances of getting any money back.
In addition I am also uniquely able to advise whether or not you’re actually going to get any money back if a company ends up in liquidation, administration or CVA etc. This is due to me having been appointed over companies going through these processes myself!
Any creditor who has any concerns as to whether or not they should take action to try and recover their debt should seek advice from me as much depends on the circumstances you find yourself in.
Whilst I specialise in rescue/recovery and insolvency utilising the formal solutions and processes available through the Insolvency Act 1986, there are many informal solutions I can provide as well:
Many directors are perfectly capable of managing their company on a day-to-day basis and coping with minor emergencies. However, when a major crisis arises, being able to take quick, decisive action will minimise the impact of insolvency on the business.
Utilising my experience, and my links with external business advisors, I will be able to clarify the factors contributing to the crisis and be able to help you put measures in place to deal with it.
turnaround advice and management
I work with you to formulate a realistic plan to overcome a company’s financial difficulties and allow it to survive. Once a turnaround plan has been agreed, I will also assist in the implementation of that plan. This may involve me working closely with you in a monitoring capacity or I may be able to provide you with access to experienced individuals who will temporarily act as Chairman, Managing Director, Finance Director etc. whilst you learn the necessary skills to get up and running again. This could even include retraining senior staff and directors and instilling a renewed sense of confidence in them to allow them to take the business forward.
Your company may have a profitable core business, but could be actually or potentially insolvent. A formal rescue or insolvency process may not be feasible, e.g. an operating licence may be revoked if the company goes into liquidation, administration etc. Financial restructuring without a formal rescue/insolvency process could be undertaken to put the company back on its feet. As this will depend upon individual circumstances, call me to discuss your options!
There will be occasions, mainly with groups of companies, although it is just as applicable to trading divisions within a single company, when a redundant or loss-making business or division needs to be closed down with the minimum of impact on the rest of the business. This can be a complex and sensitive process dependent upon individual circumstances so call me to discuss your options!