If your business ever runs into financial difficulties, how you handle the situation can have serious and lasting consequences. That’s the message behind a recent case involving a Staffordshire director who’s just been banned from running a company until 2031.
Kulbarg Singh, director of Aldridge Construction Engineering Ltd, has been disqualified for six years after selling off over £1.5 million worth of company assets to another company he also controlled - for under £500,000.
In one part of the sale, Singh transferred seven historic vehicles - including two Jaguars and three Rolls Royces - for just £1. The cars alone were worth more than £100,000. In total, the company was left more than £1 million worse off from the under-priced sales.
The company went into liquidation the following year, owing over £1.5 million to HM Revenue and Customs and other creditors. The Insolvency Service described Singh’s actions as deliberately putting the company’s assets out of reach of those creditors - and they’re now looking at ways to recover what they can.
What to do if your company is struggling?
The case serves as a strong reminder that there’s a need to take care if your company is in difficulty.
If your business starts to show signs of insolvency (such as struggling to pay debts, or liabilities outweighing assets), it’s crucial to get advice early. The sooner you act, the more options you’re likely to have.
While the temptation may be to protect shareholders, it’s important to remember that if the company becomes insolvent, your responsibilities as director will apply towards those the company owes money to, instead of the company.
If you’re concerned about your company’s financial position or unsure about how to handle a specific situation, don’t leave it too late. A quick chat with us can save a world of stress later on - and help keep your business (and your reputation) intact.
The National Cyber Security Centre (NCSC) has published a blog post exploring the potential for ‘vibe coding’ replacing the Software-as-a-Service (SaaS) business model. While not suggesting that vibe coding is ready to take over now, they conclude that vibe coding is following a pattern similar to cloud adoption 20 years ago.
A new YouGov survey commissioned by Acas shows that almost one in three employers are finding that stress, anxiety, depression or other mental health problems are a reason that staff give for sickness absence.
