A company becomes insolvent when it is unable to pay its debts when they fall due for payment. Once it becomes clear that a company is insolvent or likely to become insolvent, a decision should be made by the company directors as to the process which should be used to resolve the affairs of the company. It is important to note that the directors of a near insolvent company have duties to the creditors of the company.
The most common corporate insolvency procedures are voluntary administration and liquidation.
If you require legal advice in relation to any aspect of corporate insolvency, please contact us to arrange a meeting so that we may consider your specific circumstances.
The above information is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.