All posts in the Company Directors category

When is a Dividend illegal?

If you pay dividends out of your company when insufficient profit/distributable reserves exist, and/or the requirements of the Companies Act 2006 are not met, such dividends are deemed as unlawful/illegal/ultra-vires. Therefore, dividend payments...

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What is wrongful trading?

Wrongful trading is a type of civil wrong found in UK insolvency law, under Section 214 Insolvency Act 1986. It was introduced to enable contributions to be obtained for the benefit of creditors from those responsible for mismanagement of the...

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