As a Director of a Company you have a duty to run the business correctly. If insolvency is likely then as a Director you have a legal obligation to act in the best interest of the creditors of the company.
How do you determine whether your business is in trouble ? There are a couple of questions that you can ask yourself:-
1. Can the business pay it’s debt as and when they fall due ?
2. Does the company owe more than the assets that it has (Book Insolvent)
3. Has a County Court Judgment been issued – although this may not confirm that the business is insolvent.
Speed is of the essence
To avoid any risk of unlawful or wrongful trading, seek advice immediately.
Despite popular belief, insolvency does not necessarily mean the end of your business. However, ignoring the warning signs of insolvency may reduce any chance of getting the company back on its feet. Detecting and acknowledging that the business has financial problems is the first step. Acting quickly should give you a fighting chance of ensuring that it has a viable future.
For all the options available to you, and there are many, contact us on 01673 849284.