David Jetuah’s Post

When a business is facing financial challenges and the risk of failure one of the key determinants of whether the company will avoid #insolvency or not is the approach the directors take. Recognising this is unfamiliar territory for many I have set out some thoughts on director duties and some suggested actions management teams should be taking. #bankruptcy #directorduties #disqualification #corporatefailure

Against the backdrop of difficult economic conditions, my colleague David Kelly (Head of Insolvency at PwC UK) sets out a number of challenges that directors may face in relation to their responsibilities, and provides some useful practical steps that they can consider taking, in order to fulfil their #directors' #duties. You can access the article here: https://lnkd.in/efk9xkfx

Will I be Banned from acting as a director in the future? 🤔 This is one of the most frequently asked questions we hear, at Beesley Corporate Recovery, by Directors who are facing the difficult decision of closing their business. While there is no straight cut, one size fit's all answer here as each case is individual.. It was reported by the Gazette, that in 2023 there were a total number of 25,158 company insolvencies registered in the UK, and the total number of Director disqualifications in 2023/24 was 1,216. While these statistics may offer a glimmer of hope, the director should not shy away from seeking the advice of an insolvency practitioner sooner rather than later. For advice and support: North office: 01625 544 795 South office: 01442 233 123 East Midlands office: 01246 224 399 Jade@beesley.co.uk 07380 602461

In a climate where corporate insolvency has more than doubled, it's time for businesses to act. The ATO's new recovery process signals a shift towards stricter enforcement. Don't let your business be caught unprepared. Stay ahead with our latest insights on navigating financial challenges and insolvency reforms. #BusinessResilience #FinancialInsights #proactiveplanning

Like this post if you read my post yesterday and have come back for more! ❤️ As per my last post, this week I am focusing on insolvency. Carrying on a business while insolvent can have serious consequences for directors and officers of a company. Here are some repercussions you may face : Breach of fiduciary duties: Directors and officers owe fiduciary duties to the company and stakeholders. Operating insolvently breaches these duties, jeopardising creditor and shareholder interests. 2. Personal liability for debts: In certain jurisdictions, directors may be personally liable for the company's debts if it trades while insolvent, risking their personal assets to cover financial obligations. 3. Legal actions and disqualification: Regulators may legally pursue directors for insolvent trading, leading to fines, penalties, or disqualification for a specified period. 4. Voidable transactions: Insolvent transactions may be voided, including preferential payments. Directors may need to repay these, adding to their financial liabilities. 5. Loss of credibility & reputation: Insolvent business operation harms directors' and officers' reputations, affecting future positions and financing in the business community. 6. Investigations & reporting requirements: Directors may face regulatory investigations, especially during insolvency, necessitating cooperation and reporting on the company's financial affairs. 7. Employee consequences: Directors may face legal consequences and personal liability for failing to meet employment obligations, including wage and superannuation payments. As you can see, directors and officers must be aware of legal responsibilities and seek professional advice if insolvency is suspected. Taking prompt action, such as seeking advice or exploring restructuring, can help mitigate consequences. Like if you read this far! 😂❤️ Tomorrow I will be covering ways to tackle insolvency. See you then! #navigatebusinessrecovery #insolvency #weeklytopic

In a climate where corporate insolvency has more than doubled, it's time for businesses to act. The ATO's new recovery process signals a shift towards stricter enforcement. Don't let your business be caught unprepared. Stay ahead with our latest insights on navigating financial challenges and insolvency reforms. #BusinessResilience #FinancialInsights #proactiveplanning

What is a "delinquent director"? It's a term used to describe directors who have abused their position or acted in breach of duty, adversely impacting a range of stakeholders, such as creditors, employees, and investors. Thankfully, in the UK there's a regime in place to pursue these delinquent directors. The Insolvency Act 1986 provides grounds for claims against directors, such as wrongful trading and breach of duty as well as a range of antecedent transactions. The Company Directors Disqualification Act allows for disqualification of unfit directors for up to 15 years. But what does this actually mean, and why is it important? Basically, insolvency practitioners are given substantial legal powers to investigate cases of corporate insolvency and pursue legal action against directors who have acted inappropriately. This is critical for protecting the interests of all stakeholders involved, including those who may have been negatively impacted by the actions of these delinquent directors. If you believe that a company's director has acted improperly, don't be afraid to speak up, investigate and take action. Pursuing delinquent directors is not only important for protecting the interests of stakeholders, but it also helps to ensure the overall health and stability of our wider economy.

When a business is facing financial challenges and the risk of failure, one of the key determinants of whether the company will avoid #insolvency or not is the approach the directors take. Recognising this is unfamiliar territory for many, David Kelly PwC UK Head of Insolvency has set out some thoughts on director duties and some suggested actions management teams should be taking. #Bankruptcy #DirectorDuties #Disqualification #CorporateFailure

When a business is facing financial challenges and the risk of failure, one of the key determinants of whether the company will avoid #insolvency or not is the approach the directors take. Recognising this is unfamiliar territory for many, David Kelly PwC UK Head of Insolvency has set out some thoughts on director duties and some suggested actions management teams should be taking. #Bankruptcy #DirectorDuties #Disqualification #CorporateFailure

When a business is facing financial challenges and the risk of failure, one of the key determinants of whether the company will avoid #insolvency or not is the approach the directors take. Recognising this is unfamiliar territory for many, David Kelly PwC UK Head of Insolvency has set out some thoughts on director duties and some suggested actions management teams should be taking. #Bankruptcy #DirectorDuties #Disqualification #CorporateFailure