When a company becomes insolvent the directors must take
great care to fully address their duties and responsibilities; even more so
than usual, as they will be watched very closely if they require an insolvency
practitioner step in and process an insolvency solution for them.
Why is this? Simply put, as soon as an insolvency
practitioner is engaged as a liquidator their main duty is to the creditors not
the directors so your personal interests are not looked after by the liquidator
once they have been engaged. For example increasing the overdraft within the
normal day to day running of the business would not be an issue, but what happens if matters
start to go wrong? You may require personal help during the liquidation process
and often afterwards. So who do you turn to if you can't go to the liquidator,
surely they are there to advise you? Normally, you would need to engage an
external consultant to advise you personally while the liquidator does his/her
job. This is not the case with Jameson Smith & Co.
t Jameson Smith & Co we work very closely with you throughout
the liquidation process and afterwards if required to help make sure that
everything on your side runs smoothly and that you are protected personally as
much as is possible. So the liquidator has a duty to the creditors (people your
business owes money to) whilst having due care for the directors and Jameson Smith & Co has a
duty to the directors with due-care to the creditors. Who would you rather have
on your side? This is not meant as a slight on the liquidator quite the
contrary they have a job to do and we find that this brings a far more
equitable solution and everyone is tended to and taken care of.
