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In the tumultuous landscape of corporate finance, the pressure on directors to protect company assets during times of financial distress can be immense. However, the hasty sale or transfer of assets at undervalued prices (Transactions at Under Value) can have severe consequences. Despite being often seen as a safeguarding measure, Directors need to understand the…

When it comes to Directors Disqualification, recent guidance from the English Court of Appeal sheds light on a crucial aspect: Section 423 of the Insolvency Act 1986. This deals with transactions defrauding creditors. This guidance is particularly relevant in cases where a debtor is suspected of transferring assets through corporate structures to evade creditor claims,…

The Bounce Back Loan Scheme (BBLS) was designed to support businesses during the pandemic. With £47 billion handed out to businesses, the scheme was designed to provide a financial cushion during tough times.  However, shocking figures below show that many businesses are finding it difficult to make repayments and are in need of professional help.…

In times of financial distress, individuals and businesses may find themselves facing insolvency. This is a situation that involves the intervention of an official receiver. But who exactly is the official receiver, and what role do they play in the insolvency process? In this blog, we’ll delve into the responsibilities of the official receiver, the…

Moving through the financial landscape as a director demands a delicate balance, irrespective of company ownership. A comprehensive understanding of Overdrawn Directors Loan Accounts (ODLA) is imperative. This blog aims to explore the nuances of ODLAs, shedding light on their implications for directors and the potential legal ramifications. For directors, the avenues to extract funds…

The £50,000 Lesson: A Tale of Misuse In the heart of North London, Salih Ozhot’s misuse of a £50,000 Bounce Back Loan serves as a warning for directors and business owners nationwide. Tasked with supporting his business through the COVID-19 pandemic, Ozhot instead diverted these funds for personal use, a decision that led to significant…

In the world of business, directors play a crucial role in steering companies towards success. However, when directors fail to meet their legal obligations, the consequences can be severe. Ranging from disqualification to lasting damage to one’s professional reputation. In this article, we delve into the intricacies of director disqualification, exploring what it entails, the…