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Looking to liquidate your business? For help call 0300 303 8284
Looking to liquidate your business?
For help call 0300 303 8284

Insolvent trading by company directors

If your business is insolvent and is continuing to trade, you may be at risk personally if you are found to have breached your duties as the company director. If you have any concerns that you may be or are soon to be insolvent, you consider seeking our professional advice as soon as possible and limit the damage that potentially could be caused to yourself and your business. Call now in confidence and let our experts help you through these difficult times.

What happens to companies trading whilst insolvent?

Trading whilst insolvent can breach several provisions of the Insolvency Act 1986 which may have the effect of making directors of a company personally liable for company liabilities – the veil of incorporation can be lifted and the directors protection removed . Directors may be asked to contribute towards the assets of the business, and can face disqualification if their conduct is deemed to be inappropriate. If you would like more information on your responsibilities as director, please visit our director’s duties and responsibilities information.

You may have heard of terms such as ‘wrongful trading’, ‘fraudulent trading’, ‘transactions at undervalue’ and so on. It is important that you are advised by a professional in such areas. We can provide guidance, free of charge. It’s important you are aware of the potential risks incurred by companies and company directors when trading whilst insolvent. Common actions against Directors could involve wrongful trading and breach of duty which The Insolvency Experts will support you, learn more about the risks of trading whilst insolvent.

Trading while insolvent is not clear cut with many complications muddying the water. That’s why as soon as you become insolvent or look to become aware of financial difficulties, you should seek the advice of professional Insolvency Practitioners who’ll help you decide whether you can continue to operate or what other measures you can take to help restore your business.

Contact The Insolvency Experts

For more information on what you may need to be responsible for as business director during insolvency, see the below options or get in touch with The Insolvency Experts online. Alternatively you can also call direct on 0300 303 8284.

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Insolvent Trading
michael beal