Search results
Results from the WOW.Com Content Network
The extent of the director’s responsibility for any failure by the directors of the company to comply with— (a) s. 226 or s. 227 (duty to prepare annual accounts), or (b) s. 233 (approval and signature of accounts). Where the company has become insolvent. The extent of the director’s responsibility for the causes of the company becoming ...
Any director who knows that the company is insolvent and makes the decision to continue to trade, and in doing so increases the debts of the company can be made liable for the company debts. [2] In the UK, directors are exposed in respect of transaction at an undervalue, preferences, and extortionate credit transactions if the transaction ...
Once a director realises that his or her company is insolvent, one important thing for him to do is to seek immediate professional advice from a licensed insolvency practitioner. All directors who continue as directors of a company trading while insolvent may face disqualification under the Company Directors Disqualification Act 1986. [6]
In early 2000, after an increase in the size of the business, it was determined that the insurance company's solvency was marginal, and a small asset price change could see the insurance company become insolvent. It did. Director Rodney Adler, CEO Ray Williams and others were sentenced to prison for fraudulent activity. Pacific Gas & Electric ...
“The group faces a very challenging time, given the overhang of significant historic losses and its failure to secure long-term financing,” said interim executive director Russell Downs.
A company which is insolvent may be put into liquidation (sometimes referred to as winding-up). The directors and shareholders can instigate the liquidation process without court involvement by a shareholder resolution and the appointment of a licensed Insolvency Practitioner as liquidator. However, the liquidation will not be effective legally ...
An application to the court for an administration order may be made by the company, the directors, a creditor or any combination of them. The Enterprise Act 2002 amended the Insolvency Act 1986 to provide an out-of-court process to appoint an administrator to the holder of a floating charge or the company or its directors. This is considerably ...
It went into insolvent liquidation in January 1996. The liquidator, amongst others, applied for a contribution for wrongful trading for the period after June 1994. The court considered whether at that point in time the directors ought to have realised that there was no reasonable prospect of avoiding insolvent liquidation.