Solutions for profitable but insolvent companies

If you’re the director of an insolvent but profitable company, now is the perfect time to consider your options. Why? Because the Government recently lifted restrictions placed on the insolvency regime to combat the economic fallout from Covid-19. Over the past two years, a lot of companies used these restrictions to stay profitable by avoiding…

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End of temporary insolvency measures

Creditors are now free to present a winding-up petition on a debtor company that owes over £750 following the lifting of the government's temporary CIGA 2020 insolvency measures

Last week, the Government withdrew the temporary insolvency measures introduced two years earlier to support businesses during the Covid-19 pandemic. Creditors could obtain winding-up petitions under the temporary legislation (enacted as part of the Corporate Insolvency and Governance Act 2020). However, the debt threshold for winding-up petitions increased to £10,000 and creditors were compelled to:…

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Director disqualification and misconduct

Tips for directors accused of misconduct

Careless, deceitful, and delinquent company directors can expect to face disqualification proceedings if their actions cause creditors to suffer financial loss. Disgruntled shareholders and creditors (the people and businesses you owe) may take action against a director suspected of misfeasance or another serious transgression. However, a licensed insolvency practitioner (IP) usually instigates Director Disqualification Proceedings.…

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Top 5 Solutions for Dealing with HMRC Winding-up Petitions

Winding up petition from HMRC

  In June 2010, we posted an article explaining how to get winding up petitions dismissed and withdrawn and another, five months later, revealing how HM Revenue and Customs (HMRC) was responsible for issuing the vast majority of winding up petitions in Britain.

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Creditors Voluntary Liquidations Will Be Popular in 2011

Thousands of struggling company owners will voluntarily close their businesses this year, and most of those that do will use a Creditors Voluntary Liquidation (CVL) process. A CVL is perhaps more popular than a Compulsory Liquidation as it allows directors to put a company into liquidation with their shareholders’ approval and permission from creditors. If…

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Insolvency Practitioners to be Independently Regulated – About Time

Last week, the Office of Fair Trading (OFT) released a report criticising the insolvency industry and calling for the establishment of a complaints body to regulate practitioners. The report found that, on average, insolvency practitioners (IPs) earn fees of up to 20pc of the assets available when firms are wound up. A large part of…

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