Directors: When is your company considered to be insolvent?
Corporate insolvencies are on the rise across all sectors throughout the UK. But many directors remain unclear about the legal definition of insolvency and how their duty of care changes once their company is deemed insolvent.
In order to avoid potential personal liability and sanctions, it is essential directors take suitable professional advice and act upon it, should they suspect their company is insolvent. It is their legal duty is to protect the creditors and to avoid any further deterioration.
In this downloadable guide, insolvency specialist, George Dale, outlines the two legal tests of insolvency and the action directors need to take if their business is in this position.
We have extensive experience advising business owners and one of our Partners would be more than happy to have a non-obligatory confidential chat with you. We can be contacted at rescue@opusllp.com or call us on 020 3326 6454 and we will arrange for a call with one of our Partners.
AUTHOR
This guidance article was written by our Insolvency Practitioner, George Dale Partner at Opus.
