Liquidation—the ugly side for directors

Directors need to get the right advice.

In 2016, I originally wrote this article regarding the often under-disclosed impacts of liquidation on directors. Now, eight years later, I find it pertinent to revisit this topic. The core advice remains unchanged: directors must seek comprehensive and professional advice tailored to their specific situations and that of their company. This is essential for making informed decisions about potential steps forward. Directors must uphold their duties responsibly while also considering the personal repercussions of their decisions.

Regrettably, it's all too common for directors to be misguided by advisors who lack the necessary expertise or who may have ulterior motives, prioritising their own financial gain over the wellbeing of their clients. Such advisors might simplistically suggest that liquidation will solve all problems—a misleading and often incorrect assertion. Directors need to be cautious and ensure they are