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If in the course of winding up of a
company it appears that: ·
- The company has gone into insolvent
liquidation and
- At some time before the commencement
of the winding up of the company that person knew or ought
to have concluded that there was no reasonable prospect
that the company would avoid going into insolvent liquidation
and
- That person was a director of
the company at that time
The Court, on application of the liquidator,
may declare that that person is to be liable to make such
contribution (if any) to the companys assets as the Court
thinks proper, unless the Court is satisfied that that person
took every step with a view to minimising the potential loss
to the company's creditors as he ought to have.
Every step could include: ·
- Consult with
bankers early
- Prepare
up to date management accounts
- Ensure
prompt filing of statutory accounts
- Prepare
cash flow forecasts
- Prepare
profit and loss account forecasts
- Consult
professional advisers.
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