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Every insolvency procedure has its own set of rules and regulations that must be adhered to. Before directors decide to use any particular procedure, they would do well to understand these regulations adequately. For a pre-pack administration, SIP 16 regulations must be strictly followed to ensure the procedure is carried out lawfully. In this article,…

Dissolution is an effective method of closing a company. It is cost-effective, well-structured, and relatively easy to implement. However, it is a method only available to solvent companies, meaning all debts and liabilities must be paid before a company goes into dissolution. Directors who attempt to dissolve an insolvent company (i.e. one with debts) will…

For financially struggling companies, it can be difficult to decide on the appropriate course of action. Bringing such a company back to solvency is a challenging task alone, but dealing with creditor pressure and looming legal action can sometimes dwarf operational difficulties. Two potential solutions are apparent for companies in such a position: a Creditors’…

A Members’ Voluntary Liquidation (MVL) is a procedure used to liquidate and close a solvent company. This is done for a variety of reasons; directors might find their company not profitable enough to continue operating, want to pursue new ventures, take up a PAYE-role (due to the IR35 / off-payroll rules) or retire. An MVL…

Managing an insolvent company is a difficult task, with the usual stressors of running a company being accentuated by creditor pressure and, in some cases, the looming threat of legal action. If the situation is not handled, this potential threat can become active, with an insolvent company’s creditors filing a winding-up petition, and the courts…