Any business restructure, whether due to creditor pressure or a desire to increase profitability, or maybe to simply wind down the company, requires careful consideration.
Directors, and partners, who are considering restructuring or an insolvency process will need to aware of the minefield of conflicting interests and duties that they must step through to avoid making a difficult position worse.
As a director considering restructuring you may have questions such as:
- Which creditors can or can’t be paid to avoid breaches of director’s duties?
- What do you tell employees and when?
- What do directors do about personal guarantees?
- How will personal liability for the company debts arise?
- Will I face proceedings for any breaches or not co-operating?
- What obligations do I have to assist the office holder (liquidator or administrator)?
- How can I continue to trade with the same name after going through insolvency?
How can Kennedys help you as a director?
Knowing which interests take precedence at which time requires specialist knowledge and experienced. Difficult commercial decisions will need to be made, and directors should be taking specialist advice which the cross-departmental team at Kennedys will provide.
Kennedys can discuss all aspects from the effect of ceasing trading on director’s duties to the employment regulations that impact upon potential redundancies. Our experienced team can assist directors with each step, either alongside general advice to the business or separately in respect of personal liability aspects.
For a free initial phone assessment, get in touch with our team by using the contact form on this page, calling or emailing on email@example.com
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