Nationally, figures show 4,624 companies became insolvent in the three months to the end of September 2009 – a fall of six per cent compared with the previous quarter. But, an estimated 134,000 businesses nationally are still showing “material signs of distress” as falling GDP continues to hit firms. “The business waters have suddenly changed beyond recognition, they are a lot more dangerous and there are many more casualties,” comments Mace & Jones insolvency unit partner Dominic Vincent. “The stark and sobering reality is that if a business is found to be wrongfully trading – and the non-exec knew it would go into liquidation – this can lead to personal liability, even in a limited liability company. And if the company does not have the assets to pay the creditors, they’ll come after potentially everything a non-executive director owns.” Vincent says many non-execs have spent a lifetime grafting, expending blood, sweat and tears on a career and building a solid and solvent home, family life and retirement. “All of that is on the line if the business is in trouble and the director does not act in accordance with the law,” he says. “Remember as a non-executive director you have the same general legal responsibilities to the company as any other director.” Non-execs should know precisely how well the business is doing. “Demand to see regular accounts weekly or monthly and take professional advice if you are concerned about the solvency of the business,” advises Vincent. “Don’t be fobbed off. Seek support from other non-execs and legal advice.” For further information, contact dominic.vincent@maceandjones.co.uk or call the Mace & Jones insolvency unit in Manchester: 0161 214 0500 Liverpool: 0151 236 8989 Knutsford: 01565 634234. Picture source Related articles:You’re in chargeArchie Norman: "There are no monuments of chief executives"
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.