Directors’ responsibilities

In their capacity as directors of a Company, directors owe certain duties to the company. 

However in insolvency, the Company’s principal duty is to its creditors and not the company or its shareholders. Additionally, a director may incur personal liability for continuing to trade when the company is or nearing insolvency.

Therefore as soon as a director is aware or fears that the Company has no reasonable prospect of avoiding insolvency, they must talk to the Company’s board and take immediate independent advice. It is important that they also talk to our business management team or Relationship Manager, who are experienced at helping companies in times of financial difficulty.

Below are some practical considerations may help directors comply with their statutory obligations both in identifying instances of financial distress and dealing with such instances when they cannot otherwise be avoided..

Get in touch

If you are experiencing any financial difficulties it is important that you contact your named Relationship Manager or call our business management team on 0345 300 0268 as soon as possible, as well as get independent legal and financial advice.We are available from 8am to 8pm Monday to Friday and 9am to 2pm on Saturday.

Early identification of financial difficulty

Directors should be aware of early warning signs as financial distress can have significant implications for both the company and personally for directors.

This page provides you with a broad overview of Directors' responsibilities where a company is in financial difficulty. It is not designed to constitute legal advice and as such if your business is experiencing financial difficulty it is recommended that you always seek independent legal and financial advice.