Irish Bentley Lawyers has extensive experience in acting for liquidators, trustees and insolvency practitioners in their pursuit of directors. Therefore, it follows that we are best equipped to advise directors of companies experiencing financial distress prior to any appointment.
Our team of experienced insolvency lawyers are able to advise directors on the following:
- Options available to avoid having to liquidate the company.
- Risk exposure in relation to:
- Director loans.
- Uncommercial transactions.
- Preferential payments.
- Insolvent trading.
- Phoenix activity.
- Prospects of defending any actions which may be brought by the liquidator.
- Costs of protecting the company and the director from any litigation.
Most Common Risk to Directors – Insolvent Trading
Insolvent trading is when a director knows, or ought to know, that the company is insolvent, yet continues to allow the company to trade and incur further debts. It is the director’s duty to ensure that the company does not trade whilst insolvent. If a director is found to have committed the act of insolvent trading, the director may be held personally liable for those debts and be charged criminally.
If you are a director of a company which is unable to pay its debts it is important that you obtain legal advice as soon as possible.
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- AI M&A Award 2016: Award for Excellence in Insolvency Law
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