PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.
The Insolvency Service takes a tough line when a director of an insolvent company is found to have behaved in a way that was seriously prejudicial to the interests of creditors.
Recently, the director of an online jewellery company that took money for goods it could not, and should have known it could not, supply was banned from acting as a director for five and a half years.
The company went into insolvent liquidation in 2011 with a net deficiency of more than £250,000, which included losses to customers and credit card companies in excess of £130,000.
If your company has financial problems, contact us before the position becomes unmanageable. Continuing to trade in the hope that ‘something will turn up’ is a very dangerous strategy and the Insolvency Service will deal harshly with directors who allow their companies to continue to trade when they should be acting to minimise the loss to creditors.