Director’s Disqualification – The Criminal Law Regime Separate identity of Company It is a well-established legal principle that a company is a distinct and separate ‘person’ from its officers. With this in mind, it does not...

When a company goes into liquidation or administration, an insolvency practitioner is appointed to deal with that failed business. The practitioner has a statutory duty to investigate the affairs of the company. This includes the earlier and ongoing conduct...

When a company is presented with a winding up petition it is not uncommon for the business to continue trading whilst the directors try to resolve the issue with the creditors concerned.  However, directors need to be aware of the implications of the...

In October 2015, striking off periods were reduced under the Small Business, Enterprise and Employment Act 2015.  If there are no objections, then a company can be struck off no less than 2 months (previously 3 months) from the publication of the...

The Finance Act 2014, which became law in July, is threatening some companies with insolvency. The Act creates new powers which are designed to target individuals and companies which have taken advantage of tax avoidance/tax mitigation schemes. HMRC...

Poor cash flow may be a sign of a struggling business and in those circumstances directors need to proceed cautiously otherwise they could potentially find themselves in all sorts of trouble. Directors of limited companies are not always aware that...

Directors of limited companies are being warned that their personal assets could still be at risk if their business folds leaving a stream of creditors. Kevin Sullivan, solicitor and partner at the Essex law firm Birkett Long, says if it can be proven a...

Have you ever had a cheque bounced on you or a bank payment stopped?  If you have you will know how annoying and time wasting this is. It is trite law that a cheque is equivalent to cash! The leading case on bounced cheques and stopped bank payments...

Tougher economic environments often see a greater amount of restructuring within businesses, including a demerger. There are a number of reasons why a company may want to demerge: - to unlock shareholder value (sometimes enabling an exit by one party); - to...

David Rayner, partner from Birkett Long’s Commercial Property Team discusses the “big themes” that are likely to affect commercial premises during 2012. From the perspective of both landlords/investors on the one hand and tenants/occupiers...

Liquidators seeking to bring a claim under s.213 Insolvency Act 1986 (fraudulent trading) must be able to demonstrate that the relevant persons involved showed actual dishonesty. A recent case heard in the Chancery Division saw a company secretary and the...

When is a company insolvent? The Insolvency Act 1986 sets out a number of tests including the following: “A company is deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company’s assets is...

You have dealt with ‘Failing Company Ltd’ for years but recently it has been struggling and, at close of play one Friday, it owes you several thousand pounds. The following Monday you receive a letter from IP Insolvency Practitioners, explaining...

It is a sad but true fact that bankruptcy has become particularly topical. Here, we examine its potential impact upon family properties. When debts are greater than an individual’s assets or debts cannot be paid as they fall due, creditors may...

In the last edition of For Business we examined directors’ disqualification proceedings against the backdrop of querying whether being a director of a limited company really protected you from incurring personal liability. In this article we look at...