The use, or misuse, of bounce back loans has been a hot topic of late with vastly different positions being taken by directors. Some have been overly cautious about taking out any bounce back loan monies as personal income, whilst others have withdrawn large sums for personal benefit without any thought for the consequences. If …
What is a Creditors’ Voluntary Liquidation? Creditors’ Voluntary Liquidation (CVL) is the process where the Directors of an insolvent company can voluntarily take steps to wind up the company. The Directors call a meeting of the company’s shareholders to consider resolutions to wind up the company and decide on a decision procedure for creditors to …
Continue reading “Frequently asked questions about Liquidations”
Introduction Independent Business Reviews (IBRs) are often requested by a lending bank when a company looks to be in some form of financial difficulty. They can be viewed by directors as a painful, expensive exercise enforced by the Bank and which can lead to further financial problems. However, there can be a benefit in …
Continue reading “Could my Company Benefit from an Independent Business Review?”
Introduction There are 2 ways a company can go into liquidation. The first and most common way is voluntarily, by the directors and shareholders – this is known as a Creditors’ Voluntary Liquidation (CVL). The second way is a compulsory liquidation and is when a creditor or shareholder files a petition at court to wind …
Administration is a formal insolvency process which places a company under the control of an Insolvency Practitioner and the protection of the court. A ‘Notice of Intention to Appoint’ or ‘Notice of Appointment’ can be filed at court by the Director(s), qualifying floating charge holder, a company, or creditor to commence the process of Administration. …
Directors have a legal duty to ensure that their company is not trading whilst insolvent. But what does “trading insolvent” really mean, and how can it be correctly identified? In this article we provide an overview of the insolvency tests that can be applied to help company directors make an appropriate assessment of the situation. …
If a company is insolvent and needs to be closed then typically the directors and shareholders will decide to take the company into a creditors voluntary liquidation (CVL). Otherwise known simply as “voluntary liquidation” this is where a licenced insolvency practitioner will be appointed as Liquidator (following resolutions passed firstly by shareholders and then by creditors) over the company.
We’re often asked about the difference between Liquidation and Administration and when one should be used over the other. Here we cover the main differences between the two formal insolvency procedures,
Directors often ask if they are allowed to start another company having previously had a business which entered into liquidation, or another insolvency procedure. This article explores the options and potential pitfalls in such a situation. In general terms there is nothing to stop a director from becoming, or continuing to be, a director of …
Continue reading “Can I Start a New Company after Liquidation?”
Directors of a limited company which has gone into liquidation are prohibited from being involved with companies which use the same, or similar, name in the future unless specific procedures are followed. This is covered under Section 216 of the Insolvency Act and a director needs to carefully consider these before proceeding. What is Section …
Continue reading “Can I Re-use a Company Name after Liquidation?”
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Thomas Grummitt and Andrew Smith are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. In carrying out all work related to an insolvency appointment, insolvency practitioners are bound by the insolvency code of ethics and are subject to the regulations and guidance of their authorising body. Details of the code of ethics, statements of insolvency practice and other regulations and guidance issued by the Insolvency Practitioners Association can be found here: