Directors' Responsibilities

As a director, the law says that it is your responsibility to you to keep control of the company and to seek professional advice if necessary. If your company continues trading after there is no longer any reasonable prospect of avoiding insolvency, you could be personally liable for the debts of your limited company.

You must never ignore the problems and hope they go away, if you are in doubt speak to an expert.

As a director of a limited company, you should follow these guidelines:

• Do not continue to trade whilst the company is insolvent
• Avoid incurring more credit unless you are sure your company is able to pay for the goods or services ordered
• Do not seek to pay one creditor in priority to another
• Ensure you achieve market value for an assets that are disposed
• Always keep proper accounting records
• Always submit your accounts on time
• Always submit your tax returns on time
• Always pay Crown taxes on time

If you don't observe these guidelines you may find that you could be subject to liabilities arising from charges as serious as wrongful trading, fraudulent trading, preferences or misfeasance.

As a director you are obliged to act decisively and appropriately should the company experience financial difficulties.

At ICS we specialise in helping you recognise the signs of crisis that may affect your company or that of a client or supplier. Our highly qualified professionals are able to give impartial advice to allow you to make the correct decisions.

By seeking advice early, you can ensure that your actions are justified and your company has the best chance of surviving.

If you are worried about the current trading position of your company or director liability call ICS FREE on 0800 731 2466 or contact us online.