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?”
Introduction Since the start of the Coronavirus crisis, the Insolvency Service has been issuing monthly statistics in addition to the usual quarterly reports in order to provide more timely indicators of the impact that COVID-19 is having on insolvencies. Company Insolvencies in July In July 2020 there were 955 company insolvencies in England & Wales, …
Continue reading “Company Insolvency Statistics for July 2020 show a continued Decline”
Company Voluntary Arrangements (CVAs) are one of a number of insolvency solutions available to directors when dealing with company indebtedness. In summary, a CVA is a formal payment arrangement between a company and usually all of its unsecured creditors. It is an ideal solution where a business is trading profitably but has a large amount …
Continue reading “Will the Company Voluntary Arrangement (CVA) be more widely used post COVID-19”
Introduction Since the start of the Coronavirus crisis, the Insolvency Service has been issuing monthly statistics in addition to the usual quarterly reports, in order to provide more timely indicators of the impact that COVID-19 is having on insolvencies. Whilst the numbers are presented as “provisional” they nevertheless indicate some surprising trends and in this …
The Government’s loan support schemes have helped many businesses to weather the storms caused by COVID-19. By the end of June, over 1 million loan applications had been approved amounting to total lending of £42.9bn, of which £29.5bn related to the Bounce Back Loan (BBL). Unlike the Coronavirus Business Interruption Loan (CBIL), for which there …
Continue reading “Bounce Back Loans and the Risks for Directors in Insolvent Situations”
The Corporate Insolvency and Governance Bill is currently making its way through Parliament and is expected to become law by the end of June 2020. There are a number of key aspects to the Bill as far as insolvency is concerned, but perhaps the most striking is the introduction of a new statutory Moratorium process. …
Continue reading “The Corporate Insolvency and Governance Bill – Proposal for a New Moratorium”
The key measures – as at 19th March 2020 Businesses of all sizes will have access to a £330 billion package of Government-backed loans and guarantees. The Chancellor said he would go further and provide “as much capacity as is required”. This will be delivered through two streams, both of which will be up and …
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Paul Mallatratt (Licence No. 2039) and Louise Freestone (Licence No. 2030) are licensed to act as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales and are subject to their Code of Ethics, available in English at www.icaew.com[...]code-of-ethics-d
In carrying out the regulated profession of Insolvency, the firm is subject to the Insolvency Regulations and Guidance Notes at www.icaew.com/insolvency and the Statements of Practice at www.icaew.com[...]insolvency-regulations-and-standards