1 February 2017: BRI Business Recovery and Insolvency give the right advice, first time, every time. We sit down with the director to find out about the company affairs, the current position of the company, assets as well as liabilities and look at whether the company has a potential to survive the storm. We look at business recovery options before deciding that a liquidation is the only option available. We advise the directors of their duties when the company they are responsible for is insolvent. We advise them of the investigation that is conducted post liquidation into the affairs of the company. We don’t forget to advise directors of the responsibilities of a liquidator with regard to the realisation of assets and our obligations to consider the interest of all parties.
Watch out for the professionals that don’t do all of the above. Warnings go out to directors who fall in a trap when their companies are in a financially distressed situation.
Insolvency Practitioners (IPs) may offer to liquidate the company for a fixed fee, no discussion or understanding of the business, assets, employees or liabilities. Just a straight forward fixed fee up front from the director. Very tempting when you have a failing business, but what happens to the assets of the company and the employees?
IPs may suggest taking an employee’s redundancy entitlement as a fee for the insolvency process. However, please note BRI do not request redundancy entitlements to be paid into a client account, they should be paid to the employee direct from the Redundancy Payments Office.
We have heard of IPs coming knocking on doors, uninvited, offering to solve all problems by signing a few documents with hidden terms and conditions like full personal guarantees to cover insolvency costs. What about the exposure, directors’ duties or conduct investigations in an insolvency?
If you, your clients or someone you know has a company in financial difficulty, our team of Professional Licensed Insolvency Practitioners will always be integral, ethical and moral and give the right advice, irrespective of the fee outcome to BRI Business Recovery and Insolvency.