Business owners need to make difficult decisions about the future viability of their businesses, which is not easy in the current environment. Those decisions need to be taken carefully in light of directors’ duties to act in the best interest of the company and its creditors as a whole. If, in reality, there is no longer a viable business, by retaining employees, taking on further debt or even continuing the business, this may no longer be in the company’s best interests. If directors do not act in the best interests of the company and, in particular, its creditors, there is increased risk of personal liability for directors if the financial position of the company deteriorates.
Our guide focuses on common challenges to all businesses: cash requirements, financial pressure points, employees, tax, Brexit and directors’ duties. We also explain how these challenges can be managed alongside the financial and other support available to businesses.