Background
The Insolvency Service (“TIS”) is regularly updating their website to provide content that is not only useful to their target audience but all directors of “solvent companies”.
If you have questions about insolvency and want to talk about your specific situation with our practitioners, contact our team today.
TIS – Insolvency Information for Directors
TIS’ website includes a “director information hub”, the aim of which is “… to provide guidance to help current and future directors”.
For many roles in the workplace, there is a requirement for training and continuing professional development. However, despite the significant potential risks to a director, there is no compulsory training for first-time directors. BRI’s previous articles have set out some potentially disastrous consequences for an individual director (and their family in many cases) for breaching their fiduciary and statutory duties.
This “hub” provides information on directors’ duties, responsibilities and obligations. This represents a useful starting point for new and possibly a helpful reminder for existing directors. This makes TIS a good resource for insolvency information however, if you are unsure regarding your duties as a director in relation to a specific issue or particular circumstances, this should only be treated as a guide. There is no substitute for formal legal advice in complex scenarios. If you find yourself in a situation where you need official advice on insolvency then contact our team of practitioners.
What information might be helpful for restructuring or making employees redundant?
If directors are undertaking a business restructuring which involves taking the difficult decision to make some staff redundant, the TIS hub provides a source for some useful information.
For example, there is a link to calculate statutory redundancy pay which is based on an employee’s age, weekly pay and complete years of service. Employers should note that if an employment contract provides benefits that exceed statutory entitlements, then these contractual amounts will be payable in circumstances where a company continues to trade after the restructuring without the need for a formal insolvency process.
If a company cannot afford to pay the associated restructuring costs, please seek professional advice from a qualified insolvency practitioner. BRI are here to help – give us a call today.
Guidance is also provided on the “Advanced Notification of Redundancy Scheme” which applies where there is a proposal to dismiss 20 or more employees at a single establishment. In this case, employers are required to notify the Secretary of State using a Form HR1.
Making employees redundant is a complex area where advice from a suitably qualified and experienced Human Resources specialist and/or an employment lawyer may be required. If you have any questions about redundancy or restructuring, please contact us. The sooner you seek professional advice the better.
Other Useful Insolvency Information and Resources on TIS’ website
There are several useful resources on the TIS website that you may find helpful or useful for your company.
Some of these links include:
- Statistics – monthly company and individual insolvencies
- Press releases – TIS to take on the work of the National Investigation Service in relation to COVID-19 loan fraud
- Policy papers and consultations
- Searching the bankruptcy and insolvency register
However, we would advise that you use these resources as guidance only and make sure you contact a professional service firm like BRI before you take any action.
What if my company is struggling financially?
If your company is struggling financially, the best thing to do is to contact BRI and have a chat with one of our insolvency practitioners in confidence and without any initial charge. Whilst TIS’ website provides an overview that can be useful for gathering information, it’s best to take professional advice from a licensed insolvency practitioner (often in conjunction with other professionals) as the options will vary according to the particular circumstances of each case. BRI offer a free initial meeting with no obligation.
Common to all situations is the sooner advice is taken, the better for all key stakeholders. Contact our team today for more information.