Directors

When a business faces insolvency, those overseeing the company’s liquidation or administration hold the power to scrutinise the conduct of its directors. Misfeasance, a term denoting wrongdoing by a company officer, can lead to significant penalties if proven. Defining Misfeasance in Insolvency Under the Insolvency Act 1986, misfeasance is identified when an officer of a company, or someone involved in its promotion, formation, or management, has: Misapplied, retained, or become accountable for company money or property; or Committed any misfeasance or breached any fiduciary or other duty in relation to the company. This broad definition is designed to capture various [...]

Save Consultants, a Manchester-based company that presented itself as an alternative solution to formal insolvency proceedings, was ordered to be wound up in the public interest on 2 July. This decision followed a thorough investigation by the Insolvency Service, which revealed that the firm was operating as an unlicensed insolvency practitioner. The Official Receiver has now been appointed as the liquidator of the company. The Services Provided by Save Consultants Save Consultants offered a brokerage service aimed at assisting directors in financial distress. The company claimed to help directors sell their interests in struggling companies, ostensibly allowing them to walk [...]

June is Men's Health Month, a time to raise awareness about the specific challenges men face in staying healthy. While societal expectations are changing, men are still statistically less likely to prioritise preventive care and open up about health concerns. This silence can have serious consequences. Not only on your health but also on your business. Physical Health Concerns: Men are more prone to certain health issues, including heart disease, prostate cancer, and diabetes. Often, these conditions can be identified and managed early through regular checkups and exercise. However, a reluctance to visit the doctor can lead to delayed diagnoses [...]

Being a director of a company that becomes insolvent doesn't automatically disqualify you from future directorships. However, the consequences depend on how the Insolvency Service assess your actions during your role as a director. Here's what they will consider: Your Duty of Care: Did you act with competence and diligence? Minimising Losses: Did you take all reasonable steps to minimise losses for creditors? Compliance: Did you adhere to legal and regulatory requirements? If the Insolvency Service finds you breached your director's duties, they may restrict your ability to hold directorships for a period ranging from a few years to a [...]

For many UK businesses, a significant concern in the current economic climate is outstanding tax liabilities owed to HMRC. With rising costs and tighter margins, meeting tax obligations can be challenging. However, there are proactive steps businesses can take to address HMRC arrears and navigate this situation effectively. Understanding the Consequences of Late Payments Ignoring or failing to address HMRC arrears can have severe consequences. Penalties and interest charges accrue rapidly, further straining finances. HMRC possesses significant powers to enforce payment, including the seizure of assets, bank account freezing orders, and even winding-up petitions for persistent offenders. Communicating with HMRC: [...]

The UK business environment continues to face a multitude of challenges stemming from the complex interplay of global economic forces. As insolvency practitioners, we have a vital role in guiding businesses through these difficult times. Here, we explore the key issues impacting UK businesses and consider potential strategies for navigating this volatile environment. Post-Pandemic Recovery Meets Global Headwinds While the UK economy emerged from the pandemic's immediate grip, a full recovery remains elusive. Growth forecasts hover around 1%, with the International Monetary Fund (IMF) citing the war in Ukraine as a significant dampener [Source: KPMG UK Economic Outlook]. Disruptions to [...]

As we approach Mental Health Awareness Week, it's crucial to recognise the often-overlooked link between mental health and financial difficulty. They can create a vicious cycle, where one exacerbates the other. Here, we'll explore this connection and offer strategies to break free. The Financial Rollercoaster's Impact on Mental Wellbeing Financial worries are a significant stressor, impacting our emotional and psychological well-being. Here's how money troubles can affect mental health: Anxiety and Depression: Chronic financial stress can trigger anxiety and depression. The constant worry about bills, debt, and making ends meet can lead to feelings of hopelessness and helplessness. Sleep Disturbances: [...]