As a shareholder of a company, you can expect to receive annual dividends. These are a distribution to shareholders of the company’s profit, which are normally paid from the company’s retained earnings. However, as a shareholder you may receive what are known as liquidating dividends. But what are liquidating dividends and when would a company [...]
When a creditor lends money to a company, it is taking a risk. Whether the creditor is a bank or other lending institution, a credit card or mortgage provider, bond purchasers or utility companies, or an individual, director or shareholder, lending money is a risky course of action, particularly if the debtor defaults on payments. [...]
Insolvency and bankruptcy - it’s confusing to know which applies to your business. Whilst the two are similar, they are also very different and don’t mean the same thing. Insolvency is when a company or an individual can’t pay their debts on time. Bankruptcy is the legal process that follows when an individual has been [...]
It’s a worrying time for creditors when a limited company goes bankrupt or enters an insolvency process. The biggest concern, particularly for the smaller unsecured creditors, is whether they will ever receive the outstanding debt owed to them. There is a predetermined order in which creditors are paid during the bankruptcy or insolvency process, according [...]
Last year there were 3,883 company insolvencies in Q1 alone and that figure doesn’t include those that went into administration or entered voluntary arrangements. In the UK, when a company goes bankrupt, which is called liquidation, it stops trading, is wound up and then taken off the register at Companies House. Insolvent limited companies go [...]
Choosing the right insolvency practitioner for your UK business is very important. You may be looking for someone to help you close your business or to get help turning it around with the aim of restoring profitability. Either way these are specialist skills, which is why you need a dedicated professional. The choice you make [...]
If your company is experiencing financial distress or going through tough times, then you may be considering getting some expert advice to help you navigate these choppy waters. This would ideally be in the form of an experienced insolvency practitioner. However, unless you have dealt with an insolvency practitioner before, you may be unsure what [...]
Businesses get into trouble. Even good businesses can have bad periods. Sometimes it is down to being run poorly, other times it is simply bad luck – you never know what is around the corner. But when the trouble starts it can be very worrying and very difficult to turn around. That’s when you want [...]
