As a director, once your business is faced with liquidation you still maintain a legal obligation to protect the interests of your outstanding creditors. This means that you must continue to work towards a successful outcome for all parties involved. You must take expert advice before making any outstanding payments, taking further credit selling or disposing of assets  as this decision could have consequences.  

If the Company makes payment to certain creditors these payments could be construed as a preference and later challenged by a liquidator. Similarly if assets are sold for less than their market value, the sale again could be challenged by a liquidator These transactions are also matter for a liquidator to consider when submitting his report on the conduct of directors. 

As a director is usually classed as an employee for the business, they are entitled to financial help during their CVL. This is called Director Redundancy, and may be of vital assistance if your business has been struggling for a period of time and that has placed you in financial difficulty. If this is an option you would like to explore, our experts are ready to help. 

We understand that placing your business into voluntary liquidation can be a difficult, stressful and often confusing time. Our team at Restart BTi are committed to helping you to source the best possible outcome for the closure of your business. Our experts will work with you to reduce your risk of wrongful trading, preference payments or any other issues  that may arise as a result of placing your business into liquidation.