A recent announcement by HMRC that it intends to crack down on corporate tax debts should serve as a warning for struggling companies, especially those currently granted ‘Time to Pay Agreements’.
The tougher stance could result in many more cases of insolvency and directors’ disqualification proceedings. The latter can have far reaching consequences for company directors and their families including personal and criminal liability, adverse publicity and a loss of income.
Directors of companies struggling to pay their debts should seek advice as soon as possible as to the actions they should and should not be taking.
In relation to public companies, the Financial Services Authority is continuing to crack down on market abuse and insider dealing.
The recent conviction of Halmy Omar Sa’aid for his involvement in insider dealing with already convicted banker Christian Littlewood and his wife, marks another victory for the FSA in tackling this crime.
The trio used Christian Littlewood’s insider knowledge of confidential and privileged information about company takeovers to make a profit of £590,000 through buying shares in the companies and selling them at a profit.
Company directors who are uncertain of their obligations in relation to directors’ duties, confidential information and the possibility of insolvency, should seek the advice of a solicitor.