BUSINESSES THAT CAN BE SAVED, SHOULD BE SAVED
Companies can fail, but a good business trapped in an insolvent company can be saved. The law allows specific remedies for a restructure, specifically the Phoenix Company, Voluntary Administration and Part XIV Compromises sections of the Companies Act that provides for the restructuring of a business. Restructuring the affairs of an honest business with a sustainable future in a manner provided for by legislation is something we believe should be done.
LIMITED LIABILITY IS A PRIVILEGE THAT SHOULD NOT BE ABUSED
Sometimes, however, directors do trade recklessly, cheat their creditors and are an on-going commercial hazard either because of a lack of commercial ability or a faulty moral compass. In these cases we believe that a liquidator has an obligation to, at a minimum, uphold the rights of creditors and where possible bring a reckless director to account.
A CREDITORS RIGHTS TO ANSWERS IS NOT CONSTRAINED BY THE ESTATE’S FUNDS
We investigate every file we take on, but we do not take on every file. In many cases there isn’t any recovery for either the creditors nor for our fees. This, however, should not and does not negate our duty to investigate the affairs and records of every company.
BUSINESS FAILURE IS INEVITABLE
A degree of failure is both necessary as well as inevitable and we should not demonise managers and directors who have taken a legitimate commercial gamble and failed. We want people to take risks in business, to try new things and to give it a go. Some of these people will fail and it is important that when they do, there is an orderly and dignified process for unwinding their affairs.