When a company goes into liquidation, its generally understood that employees are entitled to redundancy pay. But what about the company directors themselves? Ultimately it is their business that has failed, and their livelihood that has collapsed.
Unbeknown to many directors, the government does provide limited company directors with statutory entitlements, such as redundancy pay, in a number of situations where a limited company has become insolvent and entered liquidation.
With some 80,000 personal insolvencies a year and around 14,000 companies becoming insolvent annually, its an issue that many business owners can find themselves facing, but a lack of understanding about statutory entitlements means many limited company director…
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