Ever since the modern insolvency era began with the passing of the Insolvency Act 1986, there has been a debate about how and when the responsibilities of Directors change as their company moves towards a formal insolvency. In broad terms, the mantra has been that they owe their primary duty to the shareholders until an insolvency filing becomes inevitable, after
With the economic climate as it has been over the last few years, it is no surprise that there are plenty of people struggling with debts. However, there is still too much of a stigma about going into an Individual Voluntary Arrangement (IVA), filing for bankruptcy or taking advantage of one of the many options for re-setting out finances and
Business energy price cap With the appointment of Liz Truss as Prime Minister, business owners have waited with baited breath to find out what, if any, support would become available for their spiralling energy bills. Yesterday they received an answer in the form of a cut on the wholesale price of energy for businesses by more than half for the next
The covid loan schemes The government’s speedy launch of the various Coronavirus Business Support loan schemes when the pandemic struck in 2020 was one of the most important planks in the raft of measures intended to prevent viable businesses from failing as Covid ravaged the UK economy. By May 2021 when the schemes closed to new applications, a total of
When the Insolvency Service published its statistics for the second quarter of 2022, all the attention was on the headline, overall numbers. There were 5,629 corporate insolvencies in England & Wales in Q2 2022, an increase of 12.7% compared to Q1 2022’s figures of 4,995 and an increase of 81.3% compared to Q2 2021 (3,105). The more meaningful comparison given
It is impossible right now to watch a news broadcast, read a newspaper or scan through a news website without being struck by the warnings of Armageddon for our pubs, clubs and restaurants, already weakened by the pandemic. Calls for immediate and targeted help from the government for the hospitality sector are multiplying and escalating. Energy prices The main focus
