It is critically important that directors understand their obligations when their company is in financial difficulty. Directors have a duty to understand the measures they can take to mitigate the risks. Companies that make decisions, sometimes painful ones, decisively and with the support of a good professional advisor tend to have a greater range of options and a better chance at recovery.
Key points:
- A company may be insolvent on a cash flow or balance sheet basis.
- Insolvent trading concerns arise if a company continues to trade despite having no reasonable prospect of avoiding insolvency.
- Directors of an insolvent company are duty bound to maximise value for the creditors, rather than the shareholders.
- In some circumstances, directors could face personal liability.
- There are sensible precautions and mitigating measures directors can take now to help protect themselves against future claims by creditors or insolvency practitioners.
- There are a range of insolvency and restructuring tools available under UK law.
Fixed Fee Advice for Companies in Financial Difficulty
We advise directors of any company in financial difficulty, or which could face financial difficulty soon, to seek legal advice as soon as possible. We understand that money is tight which is why we offer this service on a fixed fee, but it’s a wise investment as we can help to ensure that you do everything possible to give the business the best chance of survival whilst protecting your personal interests.
In this situation, taking proper advice and planning in advance is a very sensible investment of your time and money.
What to expect?
Financial Difficulty Consultation
Fixed Fee of £450 + VAT
The fixed fee will pay for a 45-minute telephone consultation with Jodi Tierney, a commercial solicitor who specialises in insolvency (both contentious and non- contentious). She is extremely knowledgeable in this area and was involved in the high-profile case of and successfully defended the former CEO of Madoff Securities International Limited against claims brought by the Liquidators. Taking her advice will provide a financially unstable company with a potential lifeline.
The 45 minutes will be used to discuss the company financial position, the Directors’ personal risk and strategies to protect both. The 45-minute consultation will be followed up with a written report outlining your possible options.
To book, or to ask any questions about the service, please contact our support team lead: [email protected]
