The recent feature article "Avoiding Corporate Collapse" [Company Director, Vol 25, No 03 April 09] highlights the issues Directors face when companies find themselves in trouble. One of the biggest issues Directors face is whether the company is trading insolvently. The consequences of trading inolvently can be devistating both to the company, creditors, staff and Directors. The AICD has lauched a new "mirosite" providing information on "Directing in Difficult Times". The general advice is to seek advice early and to deal with the issues. In another article "Insolvency up as more hit by tax bills" [AFR, p7, April 9-13], it was discussed that SMEs were at increased risk of insolvency in the current market and things were expecting to get worse".
In these difficult times it pays to have the right strategies and capabilities, and to be seeking appropriate advice.