Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
What happens after insolvency?
What happens to me after company insolvency?
The simple answer (as a director of an insolvent company) is that nothing will happen to you, if you have acted promptly and properly in the lead up to the insolvency process. Please see the links below what happens to me after company goes into liquidation and what happens to me after company goes into administration for further more specific details.
The BUT(& it is a big but) is if you haven't acted properly then you may face personal issues in the future.
- The first question that people ask is can I be a director of the company in the future if this company goes into insolvency?
The answer is yes as many times as you wish. What you shouldn't do is to act irresponsibly when acting as a director of one company and then set up another company and do the same things again. DID YOU KNOW? The law requires directors to keep up-to-date financial information and to understand the financial position of the company. Failure to do this may mean you face legal action by a future liquidator.
Most people don't get enough help from accountants and or business experts when setting up a company, thinking that they will do that later. When the company gets into financial trouble it can be more costly to extricate yourself from that mess and to work out what happened with the accounts. The KEY TIP here is this - if the company is struggling financially keep notes and records of all main decisions and have regular board meetings at which minutes are taken (notes) and resolutions passed. If you want advice on this please call any one of our experts.
- If I have provided personal guarantees will these be called in if the company goes into insolvency, liquidation or administration?
Yes probably is the answer. It is highly likely that if the company enters into liquidation or administration or a company voluntary arrangement that if it you have provided security for company debts in the form of a personal guarantee , then this may be called in. If you're in any doubt about this please call us now
- Will I be disqualified as a Company director of a company goes into liquidation or administration?
Again, the answer is NO I you acted properly, responsibly and quickly. If not the answer is possibly yes, if you have failed to act reasonably, responsibly and quickly when you knew that the company was in serious financial difficulty. Take back control protect yourself by asking for expert free help now - call 0800 9700539
By failing to act and making creditors debts worse or running the company’s cash down to £0 to pay yourself, when other creditors are not being paid; or by taking company assets that do not belong to you then you may face legal action by the future liquidator. But you really have to be very stupid to do that.
If you are thinking that the business will soon run out of cash then you must take advice now. Take back control and call us on 0800 9700539
What happens to me if the company goes into voluntary or compulsory...
If you can recognise too many of the following warning signs then it is likely...
What happens to me if the company goes into administration?
Worried about poor cashflow? Covid-19?, How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539
Please note that the guide was mostly written pre Covid-19 and there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading. A new 20 day moratorium for distressed businesses has also been introduced.