The current, and hopefully soon to be eliminated, Coronavirus pandemic will sadly result in a number of insolvent companies who will at some stage be unable to continue trading.
Finding
The Right Advice
This will not always be because they are inefficient by any means but because trading volumes will be insufficient to cover fixed costs, such as rents and arguably wages.
The implications are such that a creditor may be able to put the company into liquidation.
Sound legal advice is recommended with help pulling together the cash flow statements and assessing the balance sheet.
The legal requirements of a director of a company are onerous and become more so when trading conditions start to point towards this action.
Essential Reading Insolvency & Restructuring
Raymond Ashton’s publication of Directors Duties and Responsibilities provides useful help for all individuals undertaking this role, and essential reading where insolvency is on the horizon.
