The best thing a director can do when they feel their company is not trading as successfully as it should is to seek professional help as soon as possible.
As a director it is your job to seek help if you notice your company is in trouble and if this trouble will affect the creditors and the funds.
If you are aware that your company is struggling but continue to trade without seeking helpful advice then, amongst other misdemeanours, you can be seen to be wrongfully trading your company. Under S.214 of The Insolvency Act 1986 it states that they can hold the director personally liable to make a contribution to the company’s assets in order to minimise the loss to the company’s creditors. Put simply, this means your own personal assets such as your home could be seized in order to repay the company's debts.
The best course of action for you to take is to seek advice early on as there could be company rescue options available to keep the company trading and avoid you breaching your responsibilities as a director. Here at FA Simms & Partners we tailor our advice and help specifically to the needs of you and your client’s circumstance. Therefore the sooner you call us for free impartial advice the more options we can provide for you.
This information was brought to you by F A Simms & Partners who specialise in advising and supporting on all business rescue matters. For more information regarding the content of this article please contact FA Simms & Partners today on 0845 072 2500 or email [email protected]
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.