If your company is in financial difficulties, you may be contemplating hiring an insolvency practitioner to assist you in navigating your present predicament through a formal insolvency process. Unless you have already worked with an insolvency practitioner, you may be uncertain of what they perform and what their responsibilities are if you hire one to…
A Winding-up Petition is a formal notification brought to the court by a creditor to force a corporation into liquidation. If a winding-up order is approved by the court, compulsory liquidation can occur fast, signalling the end of the business due to insolvency. Creditors can use winding-up petitions to shut down enterprises that fail to…
Time to Pay Arrangements (TTP) are meant to assist viable businesses experiencing temporary financial difficulties by arranging repayment arrangements for debts owed to HMRC. You must continue to make the payments agreed upon under the agreement; otherwise, the TTP will collapse and you may be forced to consider other insolvency options. What is a Time…
There are numerous reasons to change the company name, but many people ask us if it may be done during administration. The goal of administration is to attempt to save the company. It is an insolvency procedure used to regain control of a firm when creditors threaten to take action against it. According to The…
The following paragraphs will explain the necessary strike-off gazette notification and how to act as a director. In this respect, Scottish firms follow the identical laws put down in the Companies Act 2006 exactly like companies in England and Wales. First Gazette Notice for compulsory strike-off – Explained A first Gazette notice is an announcement…
What are directors’ duties when a company is insolvent? Learn about Insolvency and the Director Duties and Responsibilities to Creditors When a corporation is or is likely to become insolvent, the obligations of the company directors shift significantly. In these situations, the company director’s duty to creditors takes precedence over all other duties. We are, as…
What does Compulsory Liquidation mean? Compulsory liquidation is a legal insolvency process granted by a court order. When a creditor has exhausted all efforts to recover the money owed to them, they can file a Winding Up Petition (WUP) with the courts to wind up and liquidate an insolvent company, initiating the company liquidation process….
If you run a franchise through a limited company, there may come a time when you want to close the business and explore a new venture. This can be accomplished through a liquidation process, whether a CVL or an MVL, depending on the company’s liquidity at the time of closure, and the termination clauses within…
What is an overdrawn directors loan account? An overdrawn loan account highlights that more money has been taken out of a corporation than has been put in, which can have significant tax implications. Directors sometimes withdraw money out of the Company in this manner, it cannot be considered a salary or dividend. If this money…
When a corporation goes into liquidation, its assets are sold to repay creditors, and the business has to close down. The firm name remains on the register at Companies House, but its status has changed to ‘Liquidation’, which should be noted in your privacy policy. The name is removed from the register only upon dissolution,…
As a means of providing assistance to small and medium-sized businesses that were facing difficulties as a result of the COVID pandemic, the Bounce Back Loan Scheme was implemented. Unfortunately, a lot of companies have not recovered from the pandemic, and as a result, they have found themselves in the situation where they are unable…
Dissolving a company with HMRC tax debts Dissolution is only appropriate for solvent, debt-free corporations; if you dissolve a company with tax arrears, HMRC can pursue the payment for up to six years from the date of dissolution. They can request to restore the firm on the Companies House registry and probe its activities, including…
In this post, we’ll go over what happens to a company director of a dissolved company, as well as how the conditions differ from those in liquidation cases involving creditors. Dissolution of a company, often known as ‘striking off’ a business, is rather common. The government reports that approximately 400,000 businesses were liquidated between 2020…
Since the end of the COVID-19 pandemic, licensed retailers have faced significant challenges. These included: changing customer spending habits; Low Emission Zones; alcohol duty versus competitive pricing; spiralling utility costs; rising staff expenses; and increasing overheads. Public transportation has suffered, with ScotRail operating a reduced service and late-night buses being withdrawn. The insolvency profession as…
The movable Transactions (Scotland) Bill makes a number of important changes to update and strengthen Scottish legislation governing transactions involving movable property. By changing both the legislation relating to assignation of claims (including assignations in security) and the legislation related to granting fixed charge security over corporeal moveable property and intellectual property (the only type…
Liquidation is a regulated process for closing down a business. The procedure is necessary when a corporation owes more than it has in assets (insolvent liquidation) or when it has more than £25,000 in assets to distribute to shareholders (solvent liquidation – members voluntary liquidation). When a business is liquidated, it stops trading, all of…