Home » My company is unable to pay its current debt, as a director is it my responsibility to put it into liquidation?

My company is unable to pay its current debt, as a director is it my responsibility to put it into liquidation?

There are a number of options that a company can take in this situation.  The preferred route is always a course of actions that return the company to health, a route that Walsh Taylor has supported many companies in achieving.  Research consistently shows that many companies that end up entering liquidation could have been saved if professional help had been sought earlier.

A company is deemed to be insolvent if it is unable to pay its debt or does not have enough assets to cover its debts or is unable to pay its debts as they fall due.  However a company does not need to be placed into liquidation if it shows that it can trade out of this situation, returning the company to solvency.  Walsh Taylor are experts at assessing companies and assisting the directors in taking a company back into healthy trading.

Directors can be at personal risk when a company is in a perilous position and taking advice early is is crucial for them to ensure that they are not falling foul of their duties as directors which could result in them being disqualified from acting as a director in the future.  A duty of the directors is for them to consider or act in the interests of the company’s creditors in order to minimise the potential loss to them and therefore taking advice from an insolvency practitioner to assess the whether liquidation is the best course of action for the business is important.