Directors
If the business of which you are a director is struggling, talk to us in confidence at the earliest stage. Initial consultations are offered without charge, but please don’t put off seeking advice – we will have more solutions available the earlier we can intervene on your behalf.
Even in small businesses, company directors have legally-defined responsibilities and duties which are often not much considered when the going is good, but which can become a minefield in circumstances of financial pressure. Restart BTi has the expertise on hand to guide directors through any such difficult circumstances and to offer the least damaging solutions.
Directors Liabilities
Due to the nature of limited company status, directors are not usually held personally liable for the debts of a company. However, trading while technically insolvent can expose to directors to personal liability for some or all of the company’s debts if it is judged that there has been deliberately wrongful or fraudulent trading. Accountants should be able to advise if the company slips into insolvency (which may not always be immediately obvious to directors) but our particular expertise as licensed insolvency practitioners provides access to the specific advice you will need in these circumstances.
Personal Guarantees
Directors’ personal guarantees are very common when money is borrowed or assets financed by the company concerned and if you have signed a guarantee you will be liable for any shortfall the creditor suffers should the company become formally insolvent, such as in the event of a Liquidation or Administration.
Directors can mitigate risks by negotiating the terms of the guarantee, seeking legal advice before signing, and considering insurance options to cover potential liabilities.
In the case that a guarantee has been signed by multiple directors, each will be ‘jointly and severally’ liable – meaning that any of them can be pursued for the total amount.
This can often lead company directors to attempt to ‘trade their way’ out of a financial problem, hoping to recover the business’s fortunes and avoid personal liability. However, a failure to succeed in this can lead to difficulty if the debts are still personally owed and, in addition to any, legal action that is taken for wrongful or fraudulent trading.
Contact Restart BTi Today
Never delay! Seek our help whilst we can still offer a solution. The high profile cases you’ve read about all involve people who acted too late. Contact our team today to find out more about how we can help your business.Menu
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Restart BTi
Suite 44 Dunston House
Dunston Road
Chesterfield
Derbyshire
S41 9QD
- 01246 959 388
- Fax: 03333 444 993
- Email: enquiries@restartbti.co.uk
Restart BTi is the trading name of Restart Business Turnaround Insolvency Limited, a limited company registered in England and Wales no: 11517419
Registered Office: Suite 42 Dunston House, Dunston Road, Chesterfield S41 9QD
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