Government extends business creditor insolvency measures24th June 2021
HMRC will go easy on business debts, but accountants should still prepare for increase in insolvencies13th July 2021
Company insolvency and restructuring trade body R3 has produced a new guide for directors with companies in financial distress.
The guide has been produced as part of R3’s post-pandemic Back to Business campaign, which has the tag line Act early. Seek advice. Get back to business.
If you are worried about the future of your business or are concerned about paying rent, taxes, staff or suppliers, this guide will help you understand your legal responsibilities and your options for action.
It’s no surprise that Covid-19 has been tough for businesses in all sorts of industries.
Firms have had to adapt to trading disruption, staffing changes and different working arrangements – and the pandemic is by no means over.
The new guide attempts to make it easier for businesses to adapt to these challenges and others, by:
- Explaining the duties and responsibilities of a company director and the penalties for not meeting them
- Explaining the main options open to directors with companies in financial distress
- Explaining how the insolvency and restructuring profession can help rescue viable businesses
- Helping point directors to qualified and regulated source of information
Being a company director comes with a range of special duties and responsibilities. Failing to meet these duties and responsibilities can have disastrous consequences for the business and the directors personally.
Company directors can meet their responsibilities by taking time to gauge their options when facing financial difficulties.
If you want to do this effectively, it’s crucial you get expert advice. Insolvency and restricting professionals, who R3 represents, are highly qualified and regulated and able to provide expert advice and guidance to help firms get back to business.
Tom Fox, Licensed Insolvency Practitioner at Umbrella Insolvency, said: “This guide is a great first port of call if you’re struggling with company finances and you’re not sure what to do next. One of the biggest mistakes company directors make with insolvency is leaving it too late to speak to an expert.
“Don’t bury your head in the sand. The earlier you speak to a professional, the more options you’ll have for rescue and recovery.”
Umbrella Insolvency offers free, confidential consultations for company directors struggling with financial difficulties. Speak to a member of the team for more information. Call: 0800 611 8888.