Directors Guides
Essential guidance for directors navigating business closure with confidence
Help! I’ve been hit with a Winding Up Petition
A winding‑up petition is a creditor’s legal request to the court to force a company into compulsory liquidation. Directors must treat a petition as urgent: if the court issues a winding‑up order, a liquidator takes control and the company is closed.
by Jon Rudd
Insolvency Waterfall: How Creditors Are Paid
When a company enters administration or liquidation, the insolvency practitioner takes control of its assets and distributes them to creditors. This process follows a strict legal framework known as the insolvency hierarchy, which determines the order in which creditors are paid.
What’s the Cheapest Way to Close a Company?
The most affordable way to shut down a company is through voluntary dissolution, also known as a strike-off. This director-led process involves a small fee and can be completed online using Form DS01 via Companies House.
by Jon Rudd
What is Wrongful Trading and Why it Must Be Avoided
Wrongful trading occurs when directors continue trading once they know, or should have known, that the company cannot avoid insolvent liquidation. At that point, directors must stop trading and take every step a reasonably diligent person would take to minimise loss to creditors.
Are Directors Personally Liable for Company Debts?
Limited company directors often worry about personal liability for business debts. Fortunately, UK law offers strong protection through the principle of limited liability.
Investigating Directors of Dissolved Companies
In 2022, UK government expanded the Insolvency Service’s powers to investigate directors of dissolved companies. These reforms aimed to combat fraud, particularly misuse of Covid‑19 support loans.
by Jon Rudd
How to Strike Off or Dissolve a Limited Company
Striking off, or dissolving, removes a company’s name from the Companies House register and ends its legal existence. Directors must stop trading immediately once dissolution completes.
The Process of a Creditors’ Voluntary Liquidation (CVL)
Entering a Creditors’ Voluntary Liquidation (CVL) follows a structured process designed to protect creditors and ensure directors meet their legal duties. The journey typically unfolds in several stages, from the initial board decision through to final dissolution.
by Jon Rudd
How To Close A Company Wih HMRC debts
Attempting strike‑off with HMRC arrears almost always fails. HMRC routinely objects, viewing the move as deliberate tax avoidance, and may escalate matters by filing a winding‑up petition. This forces the company into compulsory liquidation, triggers a formal investigation
Who Pays for Company Liquidation?
Liquidation costs can be covered by company assets, director redundancy claims, or personal funds. Directors should understand their options before choosing voluntary or compulsory liquidation.
by Jon Rudd
Bailiffs and Business Debts – What You Need To Know
When creditors win a warrant of control, bailiffs can seize and sell business assets to recover debts.
When is a Company Insolvent?
It can sometimes not be clear and obvious whether a company is insolvent or not. Seemingly insignificant issues can cause business failure if they happen in conjunction with other similar problems.
by Jon Rudd
