We have extensive experience in advising directors on their duties, potential liabilities and options where a company is experiencing financial distress.

This is a complex area, requiring consideration of areas such as company, insolvency and employment law, accountancy and cash modelling, and consideration of turnaround, refinancing and restructuring options.

We work closely with directors and their legal advisors in ensuring that decisions taken are reasonable, responsible and based upon reliable evidence and forecasts.

Examples of areas we can help include:

  • Reviewing financial position and forecasts and advising on whether it is reasonable for a company to continue to trade, bearing in mind directors’ duties to creditors and the issue of wrongful trading
  • Advising directors on finance options, including refinancing and raising new debt or equity investment
  • Where there is a group structure, advising on inter-group transactions to ensure that they could not be considered preferences or transactions at an undervalue

By seeking advice during this difficult period, directors can not only ensure that they maximise the prospects of avoiding insolvency but also protect the position of creditors and other key stakeholders.

In addition they also gain peace of mind and confidence they are complying with their obligations, and minimising the risks of personal liability and / or disqualification proceedings.

For further information about Directors Duties solutions, please contact your local office Partner.