Who are the directors of a company? At first sight that’s a pretty straightforward question to answer. Surely, you simply look at the company’s records at Companies House and there you’ll have it. But it’s not quite that easy. The law defines a director as “any person who holds the position of director, by whatever name called”.
Even companies with the most rigorous credit control procedures run the risk of incurring a bad debt should a customer fail. For smaller companies, incurring a significant bad debt can result in the end of the business itself.
Cash flow is the lifeblood of any business. That’s why it’s absolutely crucial to collect debts due from customers for goods or services sold on credit. Indeed it has been estimated that late payment is a major factor in at least 1 in 5 business failures.
Work out a budget – and stick to it. It’s all too easy to overspend at Christmas. We all want to give our loved ones the best that we can, and to be taken in by all those tempting adverts and offers.
A recent director disqualification case brought by the Department of Business, Innovation and Skills (BIS) shows how BIS can work with other agencies when investigating the affairs of failed companies.
A company providing a service analysing the composition of waste for local authorities across the UK, and the government’s waste and recycling agency, has ceased trading and gone into liquidation. Paul Harding and Graham Down, of tri group, have been appointed as Joint Liquidators.
Many of us remember the revulsion that we felt in 2011 when watching the BBC’s Panorama undercover investigation into the private hospital in South Gloucestershire known as Winterbourne View.
Times have been pretty tough for most businesses over the last few years, and many have gone to the wall. Seeing lots of empty shops as you walk down the local High Street, or boarded-up factories on the industrial estate is a sad sight, each telling a story of a business that’s failed. What’s even sadder, is that many business insolvencies might have been prevented.
George Osborne’s Summer Budget was not great news for businesses. Certainly there was some good news – reduced corporation tax, increased income tax allowances, raising the higher rate of income tax threshold and the increase in the national insurance employment allowance are all to be welcomed.