Director's Responsibilities
Directors of limited companies owe wide-ranging duties when the company is solvent to shareholders, employees and the company itself. Once the company starts to experience financial difficulties their duties become more onerous and they have to start paying particular attention to the rights of creditors.
At Tollers we have been advising directors in such circumstances for many years. It is vital that early professional advice is sought if the directors are to avoid facing personal liability for some or all of the company’s debts. Difficult choices may have to be made between the competing interests of employees, shareholders, suppliers, customers and creditors. It can help to take impartial advice on the situation.
