The 2023 recession: Corporate Insolvency

The UK fell into recession at the end of 2023. The UK economy has struggled with productivity arising out of the pandemic. What’s more the current cost of living crisis has further contributed to this recession. In turn, we may see a rise in companies becoming insolvent.

Beware!

The final quarterly update on company insolvencies as per The Gazette stated that:

This increase of companies declaring insolvency may lead to companies receiving claims, notices or Statutory Demands. It is important that you receive expert advice to ensure that you have the best chances of achieving a successful outcome.

Director malfeasances?

The decline of the UK economy is being felt by businesses resulting in increased financial pressure and strained cash flow.

This may result in a broad range of commercial disputes including but not limited to: the repayment of directors’ loans, defrauding creditors, preferential payments to creditors and wrongful and fraudulent trading. What’s more, directors may find themselves personally liable to the company’s creditors under the Companies Act 2006. In addition to personal liability, a director may be disqualified under the Company Directors Disqualification Act 1986.

How can Ellis Jones help?

Our expert corporate insolvency lawyers can assist advising Insolvency Practitioners or Liquidators on any claims, counterclaims or set off claims they may have. We are well equipped to advise our clients on complex issues.

If you are unsure, concerned or wish to seek advice about a company’s financial position, please visit our insolvency specialist webpage. You can contact us on 01202 525 333 or email john.mccarthy@ellisjones.co.uk. Alternatively, you can also email our specialist Insolvency team by emailing insolvency@ellisjones.co.uk.