FAQs for Directors

General Queries

1. What is a debenture?
   A debenture is a legal charge and gives the debenture holder (the lender) security over the borrower’s assets. Typically, a debenture is used by a bank, factoring company or invoice discounter to take security over a limited company.   Read more
2. Our club is insolvency what should we do?
   If the club/society is unincorporated (not a limited company) then the members are usually personally liable for all the debts.  If the club is run within a limited company then the debts will rest with the company and not the individual shareholders - unless they have had to guarantee a debt. Read more
3. How to dissolve a partnership with financial problems
   If the business is a solvent partnership then it can be dissolved by agreement with the relevant parties in line with a partnership agreement.  If the business is insolvent and cannot pay its debts in full or as they fall due then it will need to go into either liquidation, administration or a partnership voluntary arrangement (PVA).  Read more
4. What is a phoenix company
   A phoenix company describes a new company that has risen again from a previously failed company.  Quite often the old company will have gone into liquidation and the directors will buy back the assets and start trading again in the same business.   Read more