What can a supplier do if you don’t pay for stock?
Can suppliers reclaim stock for non-payment? If you can’t afford to pay for stock, can the supplier take back the goods? The supplier’s ability to reclaim goods or take back stock depends on the retention of the title clause in the contract. Different versions of this clause may have various limitations. What can a supplier […]
Commercial Lease Advice: Stop Eviction with Relief from Forfeiture
Understanding Relief from Forfeiture If you’re renting a shop or office space with a tenancy agreement in the UK, and your landlord is looking to end your lease prematurely, ‘Relief from Forfeiture’ might be a handy legal option. It’s a way to try and keep your lease and stay in your place. Wondering what Relief […]
Is it possible to face personal bankruptcy for company debts?
Are limited company directors at risk of bankruptcy if they can’t afford company debts? Limited company directors benefit from legal protection called limited liability, protecting them from personal liability for company debts or bankruptcy. Exceptions arise if you provided a personal guarantee or engaged in director misconduct. When may your business start to fail? Cash […]
Top tips for saving a failing company
How to rescue a company that is approaching insolvency? If your limited company faces insolvency due to cash flow issues, inability to meet debt repayments and poor credit, take immediate action. A licensed insolvency practitioner can assess your outgoings, streamline company operations, and suggest an appropriate insolvency procedure. Is Your Business Falling Apart? Discover 7 […]
Can you reuse a limited company name after liquidation?
What are the rules for reusing your company name post-liquidation? After liquidating your limited company, you’re unable to use the same name or similar ones for up to five years after liquidation, unless you acquire the business during insolvency proceedings, obtain court approval, or if the liquidated company was part of a group. Failing to […]
Can I sell business assets before the company goes into liquidation?
Disposing of company assets before entering liquidation In theory, selling business assets before your company enters liquidation is possible, but the Insolvency Act outlines strict conditions for doing so. Failure to comply with these requirements can result in allegations of misconduct or fraud, with severe penalties, even if there was no deliberate attempt to deceive. […]
How to Cease Trading a Limited Company
What is the easiest way for a limited company to cease trading? Ceasing to trade a limited company might seem straightforward, but the process can be more intricate than expected. Surprisingly, forming a limited company is easier than winding one up. This complexity arises from the various rules and regulations governing the winding-up process, whether […]
What you need to know about signing a business lease
Whose name should I put the commercial lease in? Because a limited company is a separate legal entity, it must manage its own liabilities, like a commercial lease agreement. If you sign a business lease under your personal name, you’re highly responsible for fulfilling the agreement if the company can’t. Although a lease under a […]
Members’ Voluntary Liquidation: How long does the process take?
What is the process for an MVL? In a Members’ Voluntary Liquidation, the winding up of a solvent company is overseen entirely by a licensed insolvency practitioner. Their responsibilities include identifying company assets, settling any outstanding debts to creditors, and distributing the remaining funds among shareholders. Subsequently, the company is dissolved at Companies House, marking […]
Members’ Voluntary Liquidation Tax: A Director’s Guide
What are the tax implications of an MVL? A Members’ Voluntary Liquidation (MVL) is a tax-efficient method for winding up a solvent company with considerable assets to share among shareholders. The money you receive is taxed as capital rather than income. Depending on your situation, you might also qualify for Business Asset Disposal Relief (previously […]