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Essential Directors Liability Review

When you first set your Limited Company up. Does nobody ever conceive of failure, your limited company?

How, therefore, will the failure of your company personally impact you? Therefore, realise the essential director’s liability review.

No Company Director acts to fail in any capacity. Indeed, the duties of company directors are onerous, and ignorance of requirements is no defence.

So, act now, request a review, so you can view your exposure and set systems in place to either stop matters further or mitigate future potential issues that may crop up.

HBG Advisory then offer Company Directors many types of reviews, too, therefore, add certainty to your directorial future.

  • Business Review;
    • Gain insight into your business and therefore recognise problems that hold you back.
  • Validation Review;
    • Verify conclusions and known issues in the Business Review, with particular business area-specific reviews with essential team members.
  • Business Analysis Report;
    • A comprehensive examination of the current operational performance of your company is issued.
  • Action System plus KPI Program;
    • Sets out the system and process to improve the dynamic of your business. Key Performance Indicator (KPI) is a measured value that shows how effectively a company is then achieving key business goals.

Essential Directors Liability Review And Highlighting Director Liability 

• Recognise and verify claims either latent or possible.

• Incorporate a summary of your circumstances financially.

• Advise with a plan detailing ways to:

  • Renegotiate;
  • Decrease or 
  • Dismiss any claims.

• Claims that require attention therefore present a considered response regarding the best option resolution.

• Advise additional strategy, then enabling best result in a cessation of employment about a process of insolvency.

Company Directors remain exposed to various claims, therefore, what are they and how may you avoid them?

Retaining the office of Company Director opens you to potential personal claims if your company fails.

They being:

  • Personal guarantee claims for: – 
    • Business finance; 
    • Trade suppliers;
    • Lease and hire purchase agreements; 
    • Property leases. 

However, it is not only individual guarantee claims that could cause you a problem. There are many types of complex antecedent transaction claims and misfeasance claims, which can be brought by the insolvency practitioner for actions you have taken as a director. 

Company Directors have little, if any, knowledge of company insolvency. What trips them up though is claims against them both financially and legally.

Exercising action now may therefore restrict your vulnerability.

Suppose you are therefore subject to a claim against you. Do you have the capacity financially to discharge the debt claimed? Will the creditor enforce a sale of your home or other assets owned with equity by you? 

Therefore, reviewing with HBG Advisory enables you to implement the recommended actions to diminish your exposure. You are thus limiting any recovery through legal action. 

Then, allowing possible settlements with a claim that holds firm, but may negotiate to a level affordable through negotiation.

Decisions carried out by directors remain therefore open to you having a case made by the Insolvency Service. Therefore, it usually leads to disqualification of a Company Director.

The HBG Advisory Company Director Report, Aids Directors Dealing With Personal liability.

Our report to you has an action plan to adopt while working alongside other advisors you may employ. Knowing what your present and possible obligations remain however complicated. It requires insolvency, accounting experience, and comprehension of the relevant UK Company Act legislation, regarding acting as company directors.

The Companies Act 2006 has many duties detailed for company directors. Although they may not be popular, these votes are necessary for a director to act responsibly and take into account the company’s position when making decisions in a limited company. They are required to act within their powers, exercise independent judgement and avoid conflicts of interest.

Please note: Any form of mitigation or elimination of a claim needs great care and planning, so not to prompt further claims.

Company directors who are subject to misfeasance claims or antecedent transactions by their companies Liquidator or the Official Receiver are often complicated and require expert support defending such claims.

Essential Directors Liability Review And Bank Reviews

Bank reviews have caused problems for UK companies in the past. However, during these precarious times due to Brexit and the Coronavirus Pandemic.

Therefore, you will need to go over your company’s financial records with your bank, so they can accurately assess the risk for both the company and its directors. So directors should know well before a potential Independent Bank review advises the Bank along with the Directors.

Ensure you are:

  • In control.
  • Know your company’s position financially.
  • What is your company’s risk of failure?
  • Steer clear of directors conduct report.

Recent changes affect how HMRC rank as a creditor in insolvency. Will then impact on directors as time goes by. The changes came into effect on December 1st, 2020, and now offer the HMRC Crown Preference again.

Please contact HBG Advisory for support on your Directors liabilities and exposure as a Company Director in 2022.

To contact HBG Advisory, please either:

Dial FREEPHONE 0330 056 3120.

Book a FREE VIRTUAL meeting safe and secure in total confidence.

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If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448..
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