Affect on a Director Of An Insolvent Company
Affect on a Director Of An Insolvent Company? Written by John A Waller, Director. Reviewed July 29th,2022.
Even if you have financial difficulties in your business, it can be awkward to seek help from qualified professionals specialising in insolvency. However, it is common for company directors to fight when insolvent. Pride and even fear take control of their decisions. However, the sooner you profit from robust advice, the better your business chances of remaining viable.
As a company director of a limited company, you must. Ensure you avoid wrongful trading. Your company must cease trading as soon as you know it may be insolvent. Failure to do so leaves you and other directors exposed to allegations of wrongdoing when the company liquidates.
We may remove any uncertainty. We briefly outline the insolvency process and its potential implications for you as a company director.
As soon as you have decided to seek advice from an insolvency practitioner, you should note everything said.
However, you still hold the director’s office until a licensed IP is appointed.
Once the insolvency practitioner assumes an appointment in any liquidation, your occupancy as company director ends. The company ceases trading (unless a trading company administration).
As part of the Liquidator’s duties, the IP will investigate the direct or conduct before their appointment.
Please read liquidation of an insolvent company for further detailed guidance.