Guidance on navigating legal pitfalls is available to limited company directors following the launch of an online service.
The Insolvency Service has set up a Director Information Hub to help directors understand their responsibilities.
The site offers guidance on what to do when facing financial difficulties and how to avoid pitfalls where possible.
The facility, specifically designed for directors of micro, small and medium-size limited companies, has been launched in the light of the statutory obligations faced by directors of limited companies, unlike sole traders.
Advice is applicable to range of businesses from hairdressers and builders with their own companies to directors of mid-sized companies in the IT sector.
Pointers include how to understand company finances, director duties and obligations.
There’s also guidance on how to recognise early warning signs of financial distress, and how and when limited company debts can become personal debts.
The Insolvency Service worked with teams in HMRC and Companies House as well as business groups to set up the hub.
Leanne Webb, project lead at the Insolvency Service, said: “Our research found that too many company directors struggled to locate the existing guidance that they needed, and that it was often complicated or overwhelming when they did.
“We hope this new one-stop shop provides the solution and helps directors take their companies in a positive direction.”
Jonathan Cooper from The Directors Helpline said: “The launch of the Directors Hub is a welcome tool in the current climate for directors of all types and sizes of businesses.
“We have been pleased to be recognised by the Insolvency Service as an important part of its development, due to the number of directors we help on a monthly basis and will continue to support its ongoing development.”
The Director Information Hub can be accessed at: https://www.gov.uk/guidance/director-information-hub
As a licensed insolvency practitioner I fully welcome this initiative. It is incredibly difficult for directors to get independent advice about their obligations and responsibilities other than from an insolvency practitioner who may well then be involved in pursuing them for any wrongdoing. A third party source of qualified information will ensure that everyone is treated fairly, equally and proportionately. Well done to the Insolvency Service (and I honestly don’t think I’ve ever said that before!). Phil Wood FCA FABRP MIPA