58
CAN DISQUALIFICATION
OF A COMPANY DIRECTOR BE CHALLENGED?
By Charles Mather, Solicitor in Harrison Drury’s insolvency and regulatory teams
Under the Company Directors Disqualification Act 1986 (the Act), people can be disqualified from acting as directors or from being involved in the promotion, formation or management of companies.
There can be financial consequences arising from disqualification, through compensation orders or undertakings, or claims by a liquidator or administrator.
Disqualification proceedings are typically instigated by The Insolvency Service for alleged misconduct, including wrongful trading, non-payment of HMRC debts, or failure to co-operate with a liquidator or administrator.
Recently, The Insolvency Service has focused on alleged misconduct relating to Bounce Back Loans.
The first step for The Insolvency Service is to issue a section 16 letter, notifying the
director that it considers a disqualification appropriate.
Crucially, this is the investigative stage, and it is possible to persuade The Insolvency Service that no disqualification is appropriate.
Even if this is not possible, The Insolvency Service is likely to offer a disqualification undertaking, whereby directors typically accept the misconduct alleged and receive a one-year reduction to the disqualification period.
The Insolvency Service might ask for a compensation order or undertaking at this stage, though it can do this up to two years after a disqualification order or undertaking.
Even so, it is possible for directors to obtain permission, under section 17 of the Act, to act as a director of certain companies, often with conditions attached.
If you receive a section 16 letter, you should take legal advice at the earliest opportunity.
DEBT RECOVERY:
A STRATEGIC APPROACH FOR BUSINESSES By Sarah Beaumont, Director,
Woodcock, Haworth and Nuttall Solicitors
In today’s volatile economic landscape, effective debt recovery is crucial for maintaining a healthy cash flow and ensuring business sustainability.
At Woodcocks Haworth and Nuttall Solicitors, we understand the challenges businesses face when dealing with unpaid invoices and delinquent accounts. Here are some strategic insights to enhance your debt recovery process.
1. Proactive Communication: Establishing clear communication channels with clients from the outset can prevent misunderstandings and delays in payments. Regular follow- ups and reminders can keep your invoices top of mind for clients.
2. Robust Credit Policies: Implementing stringent credit policies helps in assessing the creditworthiness of clients before extending credit. This can include credit checks and setting credit limits to mitigate the risk of non-payment.
3. Legal Recourse: When amicable
solutions fail, legal action may become necessary. Engaging with a legal expert can help navigate the complexities of debt recovery laws and ensure that your business’s interests are protected.
4. Technology Integration: Utilising debt recovery software can streamline the process, providing automated reminders, tracking payments, and generating reports. This not only saves time but also enhances efficiency.
5. Professional Assistance: Partnering with a debt recovery specialist can provide tailored strategies and support, ensuring that your approach is both effective and compliant with legal standards.
Effective debt recovery is not just about reclaiming owed money; it’s about fostering a culture of financial responsibility and stability within your business. By adopting these strategies, businesses can improve their cash flow, reduce bad debts, and ultimately, secure their financial future.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74
