Insolvency and administration
The definition of insolvency will depend on the circumstances of the business or personal finances of the individual. Some indicative features are listed below.
The above are very simplistic explanations of what are very complex and involved issues. It would be very easy for an individual or the director of an insolvent company to commit criminal offences or leave themselves open to civil recovery actions , even unwittingly, so proper professional advice should always be sought. The consequences for a director not behaving properly in an insolvent situation can range from being disqualified from being a director for a period of time to making themselves personally liable for the company’s debts, or even facing criminal proceedings.
Seek professional advice early. At Cooper Young, our initial advice is free.