Directors Responsibility & Advice
“important to know your responsibilities as a director”
It is essential as a director of a business you understand your responsibilities and seek assistance as soon as possible. A court or insolvency practitioner may go back up to three years through transactions for the company. Such responsibilities include:
- Prevent fraudulent trading e.g. taking credit when knowing the debt cannot be paid
- Accepting monies for goods or services that cannot be fulfilled
- Maintain adequate bookkeeping records
- Preferential treatment of creditors
- Not to withdraw funds for non business activities
In some cases such as failure of any of the above or having an overdrawn directors loan account or guarantees as a director you can be held personally responsible.
Seeking the right advice is always essential.