While the great and the good try and decide on whether the pre-pack administration is a good thing that rescues a viable business from a failed company, or a rogues charter, IP's at the sharp end try and deal with clients situations on a case by case basis. Every situation has it's routine, familiar factors, and also some unique variables to consider, when formulating a plan of action. In situations where the owner/operator is seeking to continue with the business, often the pre-pack has certain key advantages over the alternative of a trading administration or CVA. These advantages however, do not always translate into... Read more
Many Directors assume that they will face an automatic ban from acting as a Director of another company when their existing company goes into Liquidation.
This is most definitely not the case. The likelihood of a Director receiving a disqualification depends on a number of factors, relating to their conduct as Directors, and the reasons for the failure of the company.
As an Insolvency Practitioner (IP) advising a Director prior to insolvency proceedings, commenting on the likelihood of the director being disqualified is particularly difficult, as the final decision to take action is within the remit of the Insolvency Service, and there may be... Read more
The current laws are very much in favour of the Employee, too much so.
Our laws have been devised to help employees, but they have gone to far, to the extent that this good intention has backfired and led to hundreds of thousands of jobs being lost that might otherwise have been saved.
How has this happened.? As a result of draconian laws whereby small firms are faced with ruinous payments to make long serving employees redundant.
Long serving employees hold their employers to ransom, they never resign to move jobs, as they want to cash in on the “equity” in “their” jobs.... Read more
Unlike real people, it is perfectly legal to kill, or if you use the legal term, Liquidate, a Limited Liability Company.
A Limited Company in law is defined as “an artificial person” that is owned by shareholders and controlled by the directors.
When your Limited Company becomes a liability, and has outlived it’s usefulness, perhaps it will be necessary to take the sad but necessary step of ending it’s life.
If your company has few or no liabilities, then it may be possible to have the company dissolved by Companies House. The main problem with this is that the company can be brought... Read more
Insolvency is a business like no other. My approach is simple. Help the person who comes to me for assistance.
It is simply a case of first understanding the situation, think about it carefully, than form the best plan for the person asking for help. If there is a job in it for Findlay James brilliant, if not, no problem, it?s good to help, we are not desperate for business, and we know from experience that we may well be paid back with a referral from that person in the future. At the end of the day, we all like to... Read more
The Blind Leading The Blind and the Domino Effect
The US, UK, European and Swiss Central Banks issued $280,000,000,000 into the banking sector, by issuing government bonds, with the security being ?damaged assets, as in mortgage backed securities? in an unprecedented, concerted attempt to shore up the global financial system. This sort of debt swap has never been done before. In my layman?s eyes it would appear that they are effectively saying to the banks we will take all the hits, you have a Northern Rock style guarantee that we will support you. Talk about moral hazard!
We are living through a... Read more
This was the heading of a piece in the Times today, a sunny but blustery 8th April 2009 (Heavy showers last night but dry all day.
And so to the numbers, not sunny, but apocalyptic! The figures for February are the worst on record, simple as that. The worst ever, that it is historic, makes it no less frightening.
Manufacturing output dropped at an annualised rate of nearly 14 percent! 14! Industrial production dropped by 12.5 percent. That is nuts, absolutely terrifying. And the rate of negative growth is even worse in export driven countries like Japan and Germany, as demand has... Read more
Directors can often be faced with Personal Guarantees, usually to the banks and asset finance companies, landlords and certain types of trade creditors, such as building merchants. Basically if you have signed a guarantee you will be liable for whatever shortfall the creditor suffers in the Liquidation. Where guarantees have been given by more than one guarantor, on a joint and several basis, the guarantor with the most personal assets, is the one who stand to lose more, as any of the guarantors are potentially liable for the total debt. They may then be faced with trying to recover the... Read more
While the Liquidator will not, in the majority of cases, be in a position to pursue an insolvent trading action under s214 Insolvency Act, he is required to report the matter to the Disqualification Unit who will then consider going after the Director for a ban of around 2 ? 5 years in smaller cases (it can go to 15 years, the highest I have dealt with was 11, the lowest 2). Again Directors Disqualification proceedings are at the High Court and are scary expensive, Directors are looking at around £100k in legal fees. Hence when the BERR Disqualification unit... Read more
Posted on March 13, 2011
Taking advice is important, and the sooner the better, as it is likelythat you will have more options to consider. The later you leave it, the less options you will have have. Qualified and experienced Licensed Insolvency Practitioners have the skills and legal powers to deal with formal insolvency procedures, at some point if you wish to place a company into Liquidation or Administration you will need to instruct an IP.
What is an Insolvency Practitioner
An Insolvency practitioner is half accountant, half lawyer, with substantial statutory powers granted by the Insolvency Act when acting in... Read more
Insolvency Practitioners. We can help with: insolvency advice, company liquidation, winding up petition, administration, voluntary liquidation and other personal and corporate insolvency procedures.
Findlay James are Licensed Insolvency Practitioners. A firm of Insolvency Practitioners, such as Findlay James, have the legal powers to deal with a range of formal insolvency procedures including Company Liquidations (CVL), Company Administrations, Administrative Receiverships, Company Voluntary Arrangements (CVA).
If your company is insolvent, and you want to limit your liability – liquidation is the simple solution
Company Liquidations If your company is insolvent, and you want to limit your liability – liquidation is the simple solution