Working with owners of distressed companies briefing
An article in The Sunday Times entitled “Day of the Zombie” revealed some interesting facts and figures earlier this year; it highlighted the plight of a growing rank of UK businesses "running on empty" with no reserves left in the tank.
In December 2012 there were reputedly 160,000 of these companies in the UK, with these defining features:
- they’re having to negotiate payment terms with suppliers
- they’re struggling to pay debts
- they’re facing the probability that they will be unable to service debts at all if interest rates rise.
This session explores the financial and legal obligations of those facing financial distress or being investigated for directors disqualification claims, and how you, as a trusted adviser, can provide the best support for your clients in these situations.
In this free briefing for financial and business advisers, and accountancy firms you will learn about:
- The duties a director has if the company is insolvent
- What is meant by financial distress and where it can lead
- Common problems exhibited by directors of so-called ‘Zombie’ companies
- What wrongful trading and misfeasance actually mean
- What financial exposure directors have and why liability for breach of duty is probably the least important consideration for OMBs
- Business sale considerations
- Top tips for the active creditor
We will also run through the potential penal and commercial consequences a director may face in the event of company insolvency with a particular focus on disqualification proceedings and how - together - we can help to prevent these issues arising and guard against potential claims.