CVL Directors Responsibilities

As Company director(s), your responsibilities are as follows:

• In the period leading up to the meeting of the members and the decision of creditors you remain responsible for the conduct of the affairs of the Company and you are under a duty to preserve the Company’s assets and minimise its liabilities in the interest of creditors and members generally.
• You must ensure that any action that you take will not result in any creditor or member, or group of creditors or members, being preferred or given an advantage over the remainder. In particular, you should ensure that any secured creditor having a fixed and floating charge over the Company’s assets is not put in a better position as a result of trading, sales of assets on credit etc.
• No payments should be made or authorised to existing creditors of the Company, nor should you obtain any goods or services on credit.
• No delivery of goods already ordered should be accepted apart from goods and services required for the realisation of the assets, which should be paid for out of money specifically allocated.
• No assets should be disposed of, except to the extent necessary to meet essential costs and expenses, and you should take care not to allow any of the Company’s creditors to obtain possession of the Company assets pending investigation of any entitlements by a subsequently appointed Liquidator. Creditors seeking to recover goods supplied pursuant to reservation of title clauses embodied in their conditions of sale should not be allowed to remove any items from the Company’s premises and any such claims should be referred to us.
• You should not supply any goods or services on credit to existing or potential creditors.
• Cash or cheques received by the Company should be handed over to us for payment into our client account. We shall use these funds to meet the costs and expenses associated with the preparation of the statement of affairs and the seeking of a decision of creditors on the nomination of a liquidator. The remaining balance will be paid over to the duly appointed Liquidator.
• No goods or other assets should be deposited with, supplied or returned to any supplier, customer or any other person, the value of which could be used as a set off against an existing debt.
• Any overdrawn bank account must not be used. All standing orders, direct debits etc. should be cancelled (unless critical to preserving Company assets). If in doubt, please contact us.
• Adequate insurance cover must be maintained. Please advise us immediately if any insurance cover has, or is due to expire before the Company is placed into liquidation.
• You are required to bring the Company’s books and records up to date as far as is possible and to make both manual and electronic records available to the liquidator on their appointment.
• You should be aware that if a Company proposes to make 20 or more employees redundant at one establishment within a 90-day period, there is a responsibility on the employer to provide advance notification to the Secretary of State of the proposed redundancies (using Form HR1), as required by section 193 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). Under section 194, failure to notify the Secretary of State is a criminal offence, and from 12 March 2015 the potential fine is unlimited in value. We will discuss this with you in further detail if it appears applicable, however the directors should be aware of these obligations prior to liquidation.
  

    Finally, we expect you to co-operate with us as we carry out our role. In particular, we need you to be available to provide information as required, and we ask that you do not mislead or withhold information from us.