Directors' duties & wrongful trading
Directors of financially distressed companies face a totally different set of considerations and duties than they would otherwise need to consider.
When in this situation, it is critical to understand your personal responsibilities as directors to ensure you take the right action.
Distressed businesses face difficult decisions on a day-to-day basis. You, as directors, must make those decisions.
Being familiar with the issues you are facing means we can provide you with hands-on advice to minimise the risk of you being in breach of any relevant legislation, and to make a fraught process easier to go through.
We know you will have to decide which payments to make, to whom and when. We are able to advise you which payments may be business critical, to enable you to achieve the balance of preserving the value in the business for stakeholders whilst not incurring unnecessary losses.
Perhaps more importantly, we can advise you what not to do and how to avoid possible personal liability.
Having our team in your corner, acting as a sounding board when faced with problematic decisions, can be a great help when managing a company in distress.
We can become involved in the management process, attending relevant meetings and driving a strategy to achieve your objectives.
Prompt advice is essential in your position - our extensive experience in this sector will provide you with the expertise and reassurance you need.
- Advising the board of a large multi-site retailer in financial difficulty, leading to the disposal of the business and assets via an insolvency process
- Advising the board of a transportation company in financial distress and helping in connection with managerial decisions, such as business critical payments, faced by the board whilst trying to achieve a solvent sale of the company
- Advising the board of a company which operated a toxic waste disposal site and liaising with the company's bankers to establish and operate a trust account, through which payments were made without worsening the company's financial position, whilst a sale of the business was negotiated and completed