When speaking with Clients one question which is asked more frequently than any other is whether the Director of a failed Company can be a Director of another Company and are they able to trade under a similar name as to the failed Company.
According to the Myth, the Directors can no longer act in that capacity and nor can they reuse the trading name.
A Members' Voluntary Liquidation is used to formally close down a company that is solvent as all creditors owed money will be paid in full. The process also provides a cost effective and tax efficient manner in which to distribute its assets to its shareholders. Therefore, an MVL can also be used as part of a restructuring arrangement such as a S.110 scheme arrangement.
A Company Voluntary Arrangement is one of the least published tool in a Insolvency Practitioners armour. We have over the years been able to work with accountants and business advisors in repairing their client’s financial position by deferring the payments to its creditors over a sustainable period, reducing their outstanding debts or providing the Company with a breathing space in order to informally restructure itself.
Increase in number of law firms and solicitors approaching Kingsland Business Recovery for restructuring and insolvency advice. - 11th December 2012
Taz Rashid, Licensed Insolvency Practitioner and Partner at Kingsland Business Recovery has over the last 6 months seen a dramatic increase in the number of Solicitors contacting the firm for advice.
Following on from our previous eblast highlighting HM Revenue & Customs (“HMRC”) requesting more security deposits prior to providing new businesses with a VAT Number.