Ask Not What Your Liquidator Can Do For You
To misquote JFK “Ask not what your liquidator can do for you, but what you can do for your liquidator”. Many company directors/shareholders who place a company in liquidation seemingly have a reluctance or unwillingness to further engage with the liquidator, tasked with winding up the affairs of their failed company, after the initial first […]
Ways to improve work life balance during lockdown
Working from home for the past six weeks has thrown up some specific challenges when it comes to maintaining a healthy work-life balance. Granted, being a mostly desk-bound profession in insolvency/law I have been lucky and able to work from home, not everyone was. But, a high workload, cramped desk space, always present computer/dreaded emails […]
How are recoveries allocated in a Liquidation?
When administering the liquidation of a company, it is common for the Liquidator to make a variety of recoveries including sale of fixed assets, collection of Company accounts receivable, and legal claims pursued by the Liquidator. When allocating the net proceeds of recoveries, the Liquidator must assess the nature of the Recovery and determine whether […]
Tips on cashflow management during lockdown
The Government has announced lockdown alert level 4 to prevent the widespread of COVID 19 in the community. It is very challenging for a business to shut down completely if is not an essential business, and thus it is important to know the impact it will have on the cash flow for your business and […]
Served with a Statutory Demand or a Liquidation application?
The other day I helped a fellow migrant. Hardly startling you will agree, but the context was in a Court liquidation where I was the liquidator, and the fellow migrant was the director of the company that was liquidated. Furthermore, we were from completely different cultures and backgrounds. The decided advantage that I had was […]
How to use sections 12, 14 and 34 of the Receiverships Act 1993?
Section 14 of the Receiverships Act 1993 (the Receiverships Act) gives the receiver of a company the power to request and inspect the books, records and documents (the records) of the company from its directors. This power is very similar to that, which is given to a liquidator, by section 261 of the Companies Act […]
The Path to Liquidation
One of the most frustrating tensions we see as insolvency practitioners in businesspeople is between wanting to be paid and the cost and expense of taking the claim to Court. Here I will briefly touch on the process toward Liquidation of another company. Firstly, there is a statutory minimum requirement of debt being worth at […]
Why do directors fail to take appropriate steps when their company is failing?
A general trend that I and many other Insolvency Practitioners see, is the length of time directors take, firstly to recognize that their company is failing and, secondly to take any concrete steps to remedy the situation. A lot of small businesses normally do not have an accountant retained to advise them when a business […]
Why cash flow is important to a business?
As a businessperson, you do not just need to keep an eye on the profit but also the healthy cash flow of your business. Lack of cash is one of the biggest reasons that businesses fail. Some businesses make a profit but have no cash. Cash flow is the money coming in and going out […]
Security Interests and Security Agreements
Security Agreements Generally A security interest is a legal right granted by a debtor in which collateral is pledged to secure the obligations of a loan, or other form of agreement. Examples of security agreements include: A business loan, with a general security agreement over all present and after acquired personal property taken as collateral. […]
