Company Law or Insolvency

What are the dangers of insolvency?

  • Your company may still owe money to creditors. You still have to pay this back, even if your company is insolvent
  • You, as a director, can be sued if you continued to trade after the company went insolvent, and lose your personal assets

 What is it?

  • When your company is unable to fulfil its obligations to its creditors – pay its debts to them
  • This can be due to a lack of cash being available by the time that payment is due, or when the assets of your company, when future and uncertain liabilities are considered, are less than all the assets of the company in value

 What can be done?

Liquidation

  • All the assets of your company are sold off and used to settle your debts with creditors for the company

Administration

  • A Qualified Insolvency Practitioner takes over running the company, managing its trading and aims to organise the company in such a way that it can pay off the creditors
  • The creditors’ receipt of money is temporarily delayed whilst the company is restructures
  • The practitioner may try to sell the company

Company Voluntary Agreements

  • When both the company and shareholders have a significant interest in keeping the company afloat, the creditors may agree to reduce their demands to the company, or delay the demands, allowing the company to survive for longer and attempt to get back on its feet. Similar to these are Schemes of Arrangement, where a court orders similar actions

Why should I contact Sterling Law?

  • We have experienced lawyers on both sides of the dispute. If you are a creditor, we can help you recover your funds and make an agreement with the company. If you are a company member, we can help negotiate the best possible path for your company out of insolvency, and give you the ability to pay your creditors back fairly while not completely ending your company. Insolvency law is one of the most complex aspects of corporate and commercial law – so if you have any questions, contact us for free over the phone or through our website.
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Why Sterling Law

Our team of dedicated lawyers has vast experience of working with start-ups, small and medium-sized companies.

We will ensure your business operation are fully compliant, saving you time and money so that you can concentrate on your company growth, and we’ll take care of the rest. Let us know how we can help you by choosing one of the services below. Not sure what you need? Not to worry, ask your questions by filling in the form below, and we’ll get back to you with the answers.

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Commercial Law Commercial Law

Sterling Law represent businesses and individuals in commercial matters including disputes and drafting agreements relating to:

  • Commercial Contracts
  • Incorporation of Businesses
  • Agency or Franchising
  • Directors’ Duties and Disqualification
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Partnerships Contracts Partnerships Contracts

Starting a business with another person can be a great thing. A correct partnership can give your business another member who is smart, dedicated, and able to contribute great ideas to help you grow your firm. One of the most important things to do in your business, though, especially when working with another person, is to make sure to register your enterprise correctly, to find what is most beneficial for you, your partner, and your firm. Sterling Law has years of experience in all forms of corporate law, and we can specifically help you with registering a partnership, and working out if a partnership is right for you.

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Commercial Contracts Commercial Contracts

Signing a contract with another firm is often a significant step in the growth of your company, especially if it is your first big contract. In the excitement, however, it’s possible to forget that an airtight, well-designed commercial contract is one of the most important things to do. Sterling Law has years of experience in commercial contract law, and we’re happy to help at every stage of your business’s development.

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