Section 388 of the Companies Act 2006 requires company directors to ensure that their companies maintain accounting records which explain each company’s transactions and disclose with reasonable accuracy at any time the company’s financial position. They must also preserve those records for a period of time, which varies depending on whether the company is a private company or a public company. Failure to keep and preserve records as required is a criminal offence.
In every company insolvency (administration or insolvent company liquidation), the insolvency practitioner’s statutory duties include submitting a report to the Department of Business (BIS) on the directors’ conduct. The purpose of the report is to enable the Secretary of State to decide whether the director is fit to be allowed to act in the management of a company, or whether they should be disqualified for a period of time.
Is your business under pressure? It’s hardly surprising given the tough few years that we’ve had that, according to a recent report in The Daily Telegraph, a quarter of SMEs have insufficient funds to meet their short term debts. Perhaps, having been punished during the recession, you feel you’ve lost the energy, and don’t have the skills to put the business back on its feet.
My biggest customer’s gone bust owing me a lot of money. Now my business can’t meet its own debts and the taxman’s threatening to wind the company up. The business is sound but can’t carry on with its existing liabilities. It needs a clean break and a fresh start. I’ve heard about “pre-packs”. What are they all about?
There’s no doubt that we are living in extraordinary – perhaps unprecedented – times. Scarcely a week seems to go by without news of another company failure – retail company failures seem to have been particularly in vogue, with Blockbuster Video, HMV, Jessops and Comet all falling into administration in the last few weeks.
Kodak may well have sought insolvency advice recently, the company has suffered financially over recent years, competitors have quickly over took the once market leader, as they have moved forward increasingly with the digital age. Kodak recently filed for bankruptcy protection, to allow it time to assess its position without having to face looming creditors and hopefully take the essential and necessary steps to allow it full corporate recovery.
tri group (formerly Burton Sweet Corporate Recovery) is a leading firm of business recovery and insolvency practitioners. We aim to help financially distressed businesses find effective solutions to their financial difficulties. We maintain high standards of integrity, professionalism and service, as standard.
Corporate recovery and insolvency advice could benefit as many as 80% of UK businesses, this is the percentage of companies that face some form of financial difficulty in their life cycle. There are a million and one factors that can affect a company’s financial well being, which can include anything from the external issues of a poor economic climate, to a poor business strategy. Here are the top causes behind business bankruptcy.