What happens to a disqualified director?


Understanding limited company director disqualification When a company undergoes liquidation, an investigation is initiated into the underlying reasons for its failure. The liquidator meticulously examines the conduct of directors to determine whether there is culpability and subsequently reports to the Secretary of State. If the liquidator believes that the director is responsible for the company’s […]

What are the legal risks when a company becomes insolvent?


Can litigation be taken against a company director if the business fails?  A business reaches insolvency when it is unable to meet its debts as they fall due. If your company is insolvent or you are facing financial challenges with the possibility of insolvency, it understandably creates a stressful and concerning situation. However, avoiding the […]

Understanding personal liability in Partnerships


Partnerships vs Limited Liability Partnership (LLP) If your business operates as a limited liability partnership (LLP), the members enjoy limited liability. This implies that their responsibility is confined to the amount they’ve invested in the partnership. This differs from standard partnership businesses where partners are collectively and individually responsible for all business liabilities, including debts […]

Solving a dispute with your accountant


Common problems that company directors have with their accountants Feeling stressed because you’re not happy with your accountant and think you’re not getting value for money? The business relationship with your accountant is crucial for your company’s success. A positive and productive relationship can make a huge difference. But if it’s the opposite, the long-term […]

Understanding the differences between priority and non-priority debts


What are examples of priority and non-priority business debts? When facing challenges in paying multiple debts, it is beneficial to understand which ones should be prioritised and which can be addressed later. Certain creditors possess more authority than others in debt recovery and can do so without resorting to court proceedings. Here is a list […]

What is a Limited Liability Company?


What does limited liability mean for a limited company?  Limited liability relates to how much a company director or shareholder is personally accountable for the debts of their business. Many business owners choose to incorporate as a limited company, rather than working as a self-employed sole trader, mainly because it offers crucial personal financial and […]

Self Assessment: Advice when you cannot pay the tax due


What happens when a director cannot afford to pay their personal Self-assessment tax bill? As a company director, you must complete a Self Assessment tax return, unless you serve as a director for a not-for-profit organisation without receiving any remuneration. This requirement is in addition to submitting your company accounts and a Self Assessment corporation […]

Understanding LPA Receivership for Limited Companies


What is LPA Receivership? Law of Property Act Explained If your company has a loan secured on property and you fail to make payments, the lender might have the authority to appoint an LPA receiver to reclaim their funds. The chosen receiver assumes control of the asset, prioritising the interests of the secured creditor. LPA […]

How to take money out of a limited company


What is the best way to extract funds from a business? Many company directors grasp the significance of maintaining a distinction between their personal and business finances. However, when the need arises to withdraw money from the company, various options are available. While it may not be deemed ideal, you can withdraw money from a […]

Consequences of Company Liquidation for Directors


Upon a company’s voluntary liquidation, its directors assume a set of legal obligations. These duties entail prioritizing creditors’ interests and refraining from any actions that could be interpreted as wrongful or fraudulent trading. Throughout the liquidation process, directors must fully cooperate with the designated liquidator and ensure the equitable distribution of company assets to creditors. […]