insolvency

In these difficult times Companies must avoid doing business while technically insolvent.

What does this mean?

Unhelpfully the law itself does not define "insolvency". Broadly speaking it means either your company cannot pay its debts as they fall due or its liabilities are greater than its assets. Trading while insolvent triggers various liabilities for those involved and has serious consequences for Directors. In some cases, Directors can become personally liable for the debts of the company and even be disqualified from acting as a Director in the future.