At BRI Business Recovery and Insolvency (“BRI”), we meet with directors on a daily basis to offer help, advice and support when it comes to insolvency. It is very rare, in our experience, for a director to be fully aware of the legal and other duties and obligations for dealing with an insolvent company. Because of this, we have put together this insight, specifically talking about insolvency information for directors.
If you are a director and you need information on insolvency, contact our team today.
When Should Directors Explore Insolvency Information?
There is a misconception that directors should meet with insolvency practitioners when there are no other options remaining, and it is, in their opinion, time to close. However, this is incorrect. The sooner a director starts learning about insolvency and seeks professional insolvency advice from BRI, the more likely it is that other options may be available, including rescue and recovery.
Our advice to directors generally is that if something happens in their business that causes concern, for example, a company cannot afford to pay its VAT bill, it suffers a bad debt or loses a key contract, which will impact cash flow (because after all, cash is key), seek insolvency information and advice from BRI. We say this not because it is time to close a company, but it is important to become better informed on what options are available for your business. We also share with you the duties and obligations of directors and what directors need to think about in order to protect the creditors and their personal financial position.
Insolvency Information for Directors from BRI
If you are a director, you’ll be pleased to know that meeting with the team at BRI is free of charge and there is no obligation to engage with us prior to, or following the initial meeting. In addition, all meetings are completely confidential and, the important part, without judgment. We meet with directors from all walks of life; there is nothing we haven’t seen or dealt with before.
Insolvency practitioners have a very unique skillset; it is our job to problem-solve. Many of our clients have found that sometimes, just using us as a sounding board is extremely helpful and can help them solve problems that may have seemed impossible to overcome prior to a meeting with a member of our team.
The Importance of Being Informed Around the Topic of Insolvency
The reason why this is so important to seek advice is that sometimes, directors will do what they think is the right thing when, actually, legally, it isn’t. This can then open them up to potential personal liability.
If you had a legal problem, you would speak to a solicitor without hesitation. The same way you would speak to your accountant if you had a tax issue. BRI is no different to any other trusted advisor; we are here to help when a company experiences financial difficulties.
If you need more information about insolvency, contact our team today. Our practitioners are ready and waiting to ensure you have all the information you need to make an informed decision.