Company directors have exceedingly responsible jobs they are duty-bound to act in the best interests of the company and, if the company is listed on the stock exchange, are accountable to its shareholders. They routinely have to make difficult and important decisions that affect the profitability and growth of a business and ensure that the company is financially stable.
If a company runs into financial difficulties by taking on too much debt, a director must decide whether to continue to trade and for how long, or whether the company should declare insolvency. Directors who fail to acknowledge insolvency can be liable, personally, for company debts.
Insolvency arises when a company has insufficient asse…
Read the full article at: http://www.abcmoney.co.uk/2017/02/06/what-to-do-when-youre-staring-insolvency-in-the-face/