Copyright Chan Neill Solicitors
Legal Notices Authorised and regulated by the Solicitors Regulation Authority SRA ID Number: 388780
Member of the UK Advisory Network
Companies can often find themselves in cash flow situations where they may be trading when insolvent. If this is the situation we advise Directors of companies on their responsibilities to both the company and creditors. Questions frequently raised are whether or not Directors have any personal liability, or whether any personal guarantees can be or should be given. We will consider the company situation and, if appropriate, work closely with insolvency practitioners.
We advise on the financial viability of the company and consequently on what course of action can be taken to obtain maximum protection. We advise creditors on their rights to recover debts, and how best to protect their overall financial position. This could be by way of securing a charge over assets or obtaining personal guarantees. We also advise on the advantages or disadvantages of 'winding up' procedures. Our advice will assist our clients to come to the most favourable decision.
Our lawyers also advise on Company Voluntary Agreements and Partnership Voluntary Agreements. These types of Agreements have been used more often since the Insolvency Act 2000 as a result of the opportunity of securing a period of statutory moratorium. This provides protection from creditors and enables time to be secured to consider entering a Voluntary Agreement. This can often be the most effective way of protection. Both the company and creditors will have a clearer perspective of the future.