Company directors
Advice for company directors.
If cash is tight, creditors are pressing or you are unsure about your own exposure, a conversation now is worth more than one in three months. Speaking to us does not automatically mean the company must close.
Start with your position, not the procedure
You do not need to know whether you are looking at a liquidation, an administration or a rescue. We will review the company’s position with you — funding, creditors, contracts, security and the realistic trading outlook — and set out what is actually available.
Directors' duties, in plain terms
Once a company is insolvent, or heading that way, your duties shift towards creditors as a whole. That change matters, and it is where directors most often get into difficulty without meaning to. We will explain what it means for the decisions in front of you.
Two words worry directors more than any others, and both are worth stating plainly. Wrongful trading is where a director carries on past the point at which insolvent liquidation was unavoidable, and it can bring personal liability for the loss that follows. Disqualification is a separate question, decided on conduct rather than on the failure itself. Neither follows automatically from a company failing. Taking advice early is one of the clearest things you can do to keep both at a distance.
- Continuing to trade, and when that becomes a risk
- Payments to connected parties and preferences
- Overdrawn director’s loan accounts
- Personal guarantees given to lenders and landlords
- Record-keeping and co-operation duties
What happens after the first call
We listen, we review the numbers, and we explain the options and their consequences in writing. If rescue is realistic, we say so. If it is not, we say that too, and set out an orderly route forward with fixed expectations about cost, timing and what is asked of you.
Directors rarely regret asking early. They frequently regret asking late.
Questions
Questions we are asked most
Will speaking to you mean my company has to close?
No. Many conversations lead to a restructuring, a repayment arrangement or simply a clearer plan. Closure is one possible outcome, not an automatic one.
Is the first conversation confidential?
Yes. The initial conversation is confidential and free of charge, and nothing is reported or filed as a result of it.
Am I personally liable for company debts?
Usually not, but there are important exceptions — personal guarantees, overdrawn loan accounts and certain tax liabilities among them. We will tell you honestly where your exposure sits.
How quickly can you act?
That depends on the situation and what has already been served or threatened. Tell us the deadlines you are facing and we will be straightforward about what is achievable.
Related
The most common route where a company cannot continue.
Where there is still time to change the outcome.
Breathing space while options are properly assessed.
A formal, binding agreement with creditors.
Understand where the company stands today.
An orderly close for a solvent company.
Where a creditor petitions the court to wind the company up.
Next step
You do not need to know which procedure applies before you call.
The initial conversation is confidential, free of charge, and commits you to nothing.