Did you know that the directors can be made personally liable for the debts of the company from the onset of insolvency?
This is known as the "lifting of the veil of incorporation" that protects directors under limited liability.
This nonsense just highlights that people make things up all the time about subjects they have little knowledge of.
Having a limited liability company means that the directors have little risk (or limited liability) if the company fails, as long as they have acted properly and acted in time.
Voluntary liquidation is the quickest most efficient way to deal with an insolvent company that has no future.
"A man in the pub said I cannot be a director of any other company if I liquidate my company. As a result of this rubbish, many struggling directors worry about liquidating their company as they think it might seriously affect them personally. Listening to bar room experts, inexperienced accountants or lawyers or marketing people can stop decisions being made, this failure to make a decision is really what could land you in trouble.Look, if you as directors have acted naively you may not know that you have broken these laws, but now you do know, it is vital to ensure that you protect yourself as a director by acting quickly to cease trading and put the company into voluntary liquidation; or consider a company voluntary arrangement if the company is VIABLE if the problems are solved.In short, liquidation usually means, the company's trading stops and it's assets are turned into cash or "liquidated".If that money hasn’t been shared between the shareholders by the time the company is removed from the register, it will go to the state.You’ll need to restore your company to claim back money after it’s been removed from the register.The company won’t exist once it’s been removed (‘struck off’) from the companies register at Companies House.When you liquidate a company, its assets are used to pay off its debts. You’ll need a validation order to access your company bank account.One great piece of FREE advice - always make sure that ALL tax returns, VAT returns and annual returns have been completed and sent in and that other "compliance" issues are dealt with wherever possible. This is clearly a general guide so, if you have any worries at all, please, just call us and we will talk you through the situation free and with expert guidance for your situation.These are important processes and will help protect you as individual directors. Call one of our advisors or if you prefer, call our IPs (or insolvency practitioners) now: Just one CALL can solve your problems. We could help you start the liquidation process today.There is little that can be done about that, but you should not delay decisions on liquidation to try and prevent a PG being called in: just think what ALL of the company's debts landing on your shoulders would do.All banks will agree a deal to repay the PG over time - provided you work with the bank to reduce their exposure.