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Insolvent company

My client company is insolvent and appears to be  unable to pay its debts .

Can anyone suggest an appropriate note to the accounts, and/or any other action that should be taken?

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Call in an Insolvency Practitioner

Stop trading immediately.

Why would you be preparing accounts if the company cannot pay your fee?

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Or perhaps...

Your client doesn't necessarily have to stop trading but the directors should take the advice of an IP forthwith to protect themselves against allegations of wrongful trading. If the insolvency is technical - due to an unexpected bad debt forcing a cash-flow issue then it may be possible to trade out. If it is terminal then the key is to protect innocent creditors.

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Read my article on this very subject...

Earlier this year I wrote an article on this subject - it lists what needs to be done.

As the intro states: 'Directors need to take care of their actions'....

Check it out...

Directors’ duties for companies in difficulty 24.04.12

http://www.accountingweb.co.uk/article/directors%E2%80%99-duties-companies-difficulty/526675

 

 

 

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