Insolvency is sometimes the inevitable outcome of the business process. Faced with an inability to meet financial obligations and/or an excess of liabilities over assets, hard decisions have to be reached in a timely manner, often based on limited information.
Company directors, both registered and shadow (participation in controlling the direction of company affairs or giving instruction to directors), are subject to significant legal obligations. In the circumstances of a company failure, there is every probability that the directors’ decision-making process will be critically assessed at some future date, with the advantage of hindsight. Mistakes can happen. Under these circumstances, frequently asked questions include:
- When was the actual point of insolvency reached by the company?
- When should the directors have realised that the company was insolvent?
- Were the directors’ actions commercially reasonable under the circumstances?
- Were there any transactions at under-value or preferential in nature?
- Are the directors open to criticism and/or fit to act as directors?
- Where are the Company’s assets?
We recognise that Business Recovery/Insolvency assignments may benefit from the introduction of specialist Forensic Accounting services, whether in an advisory capacity to the insolvency team responsible or to the company and/or individuals subject to the insolvency procedure.
We are also experienced in the both the prosecution of, and defence to, allegations of:
- Director Disqualification
- Wrongful or Fraudulent Trading
- Sale of assets at “undervalue”
- Misappropriated Assets