Dissolution: Not necessarily a conclusion
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill 2021-22 is currently making its way through parliament and as and when it becomes law, Directors of dissolved companies will face much more scrutiny, especially those that had accessed financial support during the pandemic.
Many Directors might assume that by dissolving their company they will be relinquishing themselves of their responsibilities to creditors; creditors have always had the power to apply to court to get the company reinstated, however in many situations it is not commercially viable.
The proposed bill goes a step further to hold Directors to account, which could have serious consequences for them as individuals, in particular those that have abused COVID-19 financial support.
It is paramount that if your business is facing financial challenges you seek professional advice at the earliest opportunity.
Beesley’s are here to help – contact us for advice and support:
North office: 01625 544 795
South office: 01442 233 123
East Mids office: 01246 224 399
For further information on the proposed bill, see R3’s response here: R3 | Press, Policy & Research | R3 Blog