#directorduties

Receiving a statutory demand is often the first clear warning that a creditor is preparing to escalate matters towards insolvency proceedings. For many company directors and business owners, the situation becomes significantly more stressful where the 21-day deadline to respond has already passed. A common assumption is that once the deadline has expired, nothing can be done and a winding-up…

winding-up petition order is one of the most serious outcomes a company can face. Once the court makes a winding-up order, the company is placed into compulsory liquidation and control of its affairs is effectively removed from its directors. For many directors and creditors, this stage is poorly understood, yet it is precisely when legal, financial, and personal risks become most acute. This…

What Happens to Directors During Company Liquidation

When a company enters liquidation, directors often feel uncertain about their position and obligations. Understanding their role during this phase can prevent confusion and future issues.

Here’s what directors should know:

🔹 Control Transfers: The liquidator takes charge of company operations once liquidation starts.

🔹 Legal Duty: Directors must cooperate and provide accurate company records.

🔹 Liability Risks: Mismanagement or unpaid debts may still fall under director responsibility.

🔹 Record Submission: Financial and legal documents must be submitted promptly to avoid penalties.

🔹 Future Restrictions: Some directors may face limits on managing new companies for a set time.