Directors’ Loan Accounts and Dividends: Everything You Need To Know

At DMC Recovery, we frequently handle cases involving directors' loan accounts and unlawful dividends. Let's delve into what these claims entail and how they're addressed in practice. Directors’ Responsibilities Directors are bound by duties outlined in the Companies Act 2006. They must act in good faith and prioritise the company's success. In cases of solvency, their duty lies with shareholders; in insolvency, creditors take precedence. As fiduciaries, directors manage the company's funds, akin to trustees, with obligations such as good faith and avoiding conflicts of interest. Directors’ Loan Accounts Overdrawn directors' loan accounts represent debts owed by directors to the [...]

2024-03-20T11:40:27+00:00March 20th, 2024|Advice, Directors|

Five Indicators of Financial Distress

In navigating the intricate landscape of business finance, recognising early warning signs of financial distress is paramount for proactive management. The following five tests serve as crucial indicators, signalling potential challenges that require swift attention. From overdue payments and legal entanglements to cash flow struggles and balance sheet examinations, these markers provide a comprehensive overview of a company's financial health. Timely recognition and remedial actions based on these tests can often prevent further complications and foster a healthier financial trajectory for businesses of all sizes. Overdue Payments and Legal Notices The business has either received a Statutory Demand or County [...]

2024-02-19T00:32:00+00:00February 8th, 2024|Advice, Company news, Uncategorized, Updates|
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