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The UK economy continues to face a multitude of challenges.   Political uncertainty and a fast-evolving economy cause turbulence and cash flow pressures.  Accountants have a key role in diagnosing issues and advising when a business faces decline.  Experience confirms that:

• The sooner the potential risk of insolvency is detected; then 
• The wider the remedial options; and thus
• The improved prospects of optimum outcome, which can mean preserving all or part of a business, 

In that context, accountants are trusted and experienced advisers.  An accountant is often the first call for any director when business declines.  The right advice – including when to consult other professionals – can mean retaining the client. 

This course will aid accountants in identifying factors, which can lead to business failure.   and help you spot the early warning signs. 

In this session Howard Roberts will cover the following topics:

1. Identifying types of Insolvency and timing: 

• Differentiating between cash-flow and balance-sheet insolvency is vital for identifying financial distress early – s.123 Insolvency Act 1986 (IA86).  
• Analysis of types of creditor claims and pressure - key in measuring available options. 

2. Types of Proceedings: Understanding formal insolvency procedures is vital as each impacts how assets are managed, claims pursued and outcomes for creditors: -

• Administration. 
• Company Voluntary Arrangements (CVAs), 
• Three types of Liquidation – to include Provisional Liquidation.
• Company Directors’ Disqualification Act 1986 (CDDA 86)
• Restructuring and turnaround plans

3. Analysis of potential claims arising against accountants/directors/officers under the IA86 and CDDA 86: -

• Negligence 
• Misfeasance – including duty to maintain records, excessive remuneration, unlawful dividends and overdrawn director loan accounts 
• Preference, transactions at undervalue
• Wrongful and fraudulent trading
• Defences from statute and caselaw– Re. Duomatic and others

4. Priorities for Distribution: hierarchy of creditors: -

• secured, 
• preferential, 
• unsecured 
• ensure equitable distribution of funds.

By attending this session, delegates will learn practical skills which can applied to a wide range of circumstances where clients :

• Need focussed advice, often in urgent circumstances of potential or actual insolvency; against 
• A complicated technical legal regime; where 
• The practical impact of any given decision can be immensely significant, whether that decision results in an act or omission.

This session will the session be of most interest to:

• Client advisers;
• Auditors; and 
• business owners,  

As insolvency applies in myriad of situations; the course will cover any especially topical issues extant at the course date.

This course aims to provide a general overview of insolvency issues.  It is thus suitable to a wide range of delegates from those with no prior knowledge to those with more advanced practitioners.  

• Foundation
• Intermediate
• Advanced