All posts by Bretts Business Recovery

What is overtrading?

Overtrading is when a business takes on work and tries to complete the orders but finds that fulfilment requires greater cash, or further resources than are available. The reasons could be many, and can be unforeseen, rather than just attributing...

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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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