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Navigating insolvency laws can be complex, especially when it comes to the reuse of a company name after liquidation. Section 216 of the Insolvency Act 1986 is a critical piece of legislation that every director and business owner should understand to avoid severe penalties. Below, we break down what this law entails, its implications, and…

Directors of limited companies often enjoy the protection of limited liability, meaning their personal assets are typically safe from business debts. However, there are circumstances where directors can become personally liable for company obligations. Understanding personal liability risks for directors, and taking proactive steps to mitigate them is crucial for safeguarding your financial and professional…

The construction sector continues to face significant financial distress. The latest insolvency statistics for October 2024 reveal ongoing challenges for businesses in the sector. While overall company insolvencies in England and Wales fell by 10% compared to September, and 24% compared to the same month last year, construction remains the hardest-hit industry. Moreover, in the…

The Insolvency Service, with a history stretching back to the 19th century, continues to play a vital role in supporting the UK economy. Its core mission—to deliver economic confidence—remains unchanged, even as the financial landscape evolves. Now halfway through its five-year strategy, the Insolvency Service is focused on maintaining its reputation as a global leader…

The legal landscape surrounding misfeasance claims in the UK is constantly evolving, and directors need to stay informed to protect their interests. Recent changes can significantly impact how misfeasance cases are handled and the risks directors face. Here’s an overview of the latest updates in UK misfeasance law and what they mean for you. 1.…

The world of glamour and fame may seem like a dream come true to many, but the case of Katie Price serves as a stark reminder that even celebrities can face severe financial challenges. Price, a former glamour model, has been grappling with bankruptcy for several years. Her ongoing battle with a tax bill exceeding…

Company directors must be vigilant about the implications of insolvency, particularly when it comes to preference payments. Understanding what constitutes a preference and the potential consequences is essential for maintaining legal and ethical standards. Here’s a guide on what directors should know about insolvency preference payments. What is a ‘Preferential Payment’? A ‘preference’ occurs when…