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Companies in Difficulty

Companies in Difficulty A Guide for Directors

Author: David Bridge
Publisher: ICSA Publishing
ISBN: 9781860724275
Published In: June 2009
Format: Paperback
Jurisdiction: U.K. ? Disclaimer:
Countri(es) stated herein are used as reference only

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When a large concern ceases to trade the ripples reach out over a very wide pool of businesses – suppliers may be left with unpaid invoices for goods already delivered; related companies and individual officers may find guarantees called upon by banks; and businesses who were customers find themselves without goods or services critical to their own trading.

Further issues arise for the directors of companies which find themselves in financial difficulty. In such circumstances it can be difficult for company directors to arrive at the best strategy for safeguarding the interests of their companies whilst complying with their statutory and fiduciary duties, a breach of which can result in a fine, disqualification, liability to contribute to the company's assets or even a prison sentence.

So whether you are dealing with customers and suppliers who have gone or look as if they are about to go bust, or your own business is struggling to stay afloat, Companies In Difficulty: A Guide for Directors provides clear guidance on what steps need to be taken and when.

Includes clear commentary and guidance on:

The tests for insolvency
Administration, receivership, company voluntary arrangements and liquidation
Commencement of cross-border insolvency proceedings within the EU
Directors’ duties under the Companies Act 2006
The obligations of directors in relation to such issues as avoiding wrongful or fraudulent trading or being party to undervalue transactions
The penalties that may result from a breach of statutory and fiduciary duties
Variation of contract in the light of worsening trading conditions
Creditors meetings

It points out the early warning signs that a customer or supplier may be in difficulty and the action required, and covers the contractual and procedural safeguards for ensuring that your company gets paid or its goods returned .

Introduction
The tests for insolvency
Personal Guarantees
Misfeasance or Breach of Fiduciary Duties
Wrongful Trading
Fraudulent Trading
Undervalue Transactions
Preferences
Transactions Defrauding Creditors
Dealing with struggling companies

Glossary
Table of procedures
Checklists of events with statutory authorities cited.
Creditors guide to liquidator’s fees
Proof of debt – standard documents

David Bridge: David is a Senior Associate and qualified solicitor-advocate in Allen & Overy LLP's commercial litigation and arbitration group. He has acted in numerous large scale High Court cases and matters relating to administrations, liquidations and schemes of arrangement, including the Marconi scheme of arrangement in 2003. His clients include major UK and international corporates in the engineering, energy and manufacturing sectors, as well as banks and private equity groups