The whole idea is to allow businesses facing economic hardships to restructure and survive. It is intended to give the business some time to restructure without having to battle with the suppliers, creditors, landlords etc.
Insolvency and liquidation can be a very traumatic time for the senior officials of any company. Not only does insolvency and liquidation represent a failure on their part to produce profitable results, it means every action they have taken especially during the current and previous financial year will be scrutinised in great detail.
During the insolvency and liquidation process, there is a Damocles sword hanging on top of every senior official’s head and if it found that some had exceeded their mandate o…
Read the full article at: https://industrytoday.co.uk/finance/voluntary-administration-experts-help-through-insolvency-and-liquidation