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What is the Order of Creditors in Liquidation? Secured creditors are those who hold a security interest in some or all of a company’s assets, typically giving them priority in repayment. Creditors are ranked in the following order: Liquidator fees and expenses, Secured creditors with a fixed charge, Preferential creditors, Secured creditors with a floating…

What Is A Declaration Of Solvency In An MVL Procedure? The declaration of solvency in a Members’ Voluntary Liquidation (MVL) procedure is a crucial document with significant legal implications. The declaration confirms that the company can settle its outstanding liabilities, including interest, within 12 months of liquidation. You must sign the declaration before initiating the…

Directors’ Personal Guarantees: Liability in Liquidation Directors’ personal guarantees represent a critical aspect of corporate governance and financial liability.  In the context of liquidation, these guarantees assume even greater significance, as they delineate the extent to which directors can be held personally accountable for debts incurred by their companies.  This area of law intersects complex…

What is Balance Sheet Insolvency – a Complete Guide Balance sheet insolvency is a financial issue that can have significant consequences for companies and their stakeholders. It is a complex subject, and understanding its implications is crucial for business owners, directors, and investors alike. Balance sheet insolvency is a more severe form of financial distress…

Recourse and Non-Recourse Invoice Factoring As a business owner, you may have encountered the terms “recourse factoring” and “non-recourse factoring” while seeking financing solutions, such as recourse and non-recourse invoice factoring. Invoice factoring is a form of debt finance that provides businesses with access to working capital. Recourse and non-recourse factoring offer different levels of…

Understanding Employment Benefit Trusts (EBT) Employee Benefit Trusts (EBTs) have emerged as a powerful tool for companies looking to incentivise and reward their workforce. A company creates an Employee Benefit Trust (EBT) that provides financial benefits to its current and former employees. An employee ownership trust is typically governed by a trust deed, which sets…

What is the Role of the HMRC Fraud Investigations Service In today’s world, tax fraud and aggressive tax avoidance have become increasingly complex and challenging issues. Understanding what is the role of the HMRC Fraud Investigations Service (FIS) is essential for taxpayers, businesses, and professionals alike. The HMRC Fraud Investigations Service is a specialized unit…