A directors responsibilities are essential to the company, its shareholders and its creditors. They must act fairly in the interests of these at all times. However, if a company becomes or may become insolvent then the directors responsibilities change.
Some key points to help your directors responsibilities are as follows:
- Act in the best interest of creditors generally
- Resignation is not an option
- Do not take further credit
- Pay cash on delivery
- Treat all creditors equally
- Do not pay one creditor in preference to another
- Do not sell or dispose of assets at an undervalue
- Preserve the company’s Books and Records
- Seek professional advice
- Preserve the company’s bank account
- Do not repay your loans
These are just a few examples of the key issues and there are many more things to consider.
Contact us on 08000 724 558 now for free advice and support from one of our team.
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