What is insolvency in business?
A company is insolvent when it cannot pay its debts as they fall due or when its liabilities exceed its assets under the Insolvency Act 1986.
Related FAQs
- Are the company’s directors bound by the shareholders agreement when they make decisions?
- Can our terms and conditions include penalties for late payment?
- Can we get our goods back if the customer doesn’t pay?
- Do we need to have a written partnership agreement for our business partnership?
- Does a company need to have a shareholders agreement?
- How can I get money back from someone I lent it to?
- How can I protect myself against cash flow problems when selling to high risk customers?
- How can I tell if a customer risks becoming a bad debt?
- How do business leases work?
- How long a credit period are customers entitled to?
- How much will it cost to draw up a shareholders or partnership agreement and will each individual need their own legal advice?
- Is it better to include key terms in the company’s articles of association or a separate shareholders agreement?
- Is the customer entitled to withhold payment if part of a delivery is missing or faulty?
- The amount of cash we have tied up in credit sales is causing cash flow problems — what should we do?
- What are the main issues we need to cover in a shareholders agreement or partnership agreement?
- What credit control measures should we put in place to encourage prompt payment?
- What do we need to do to ensure that our terms and conditions apply to the sales we make?
- What happens if we want to change the terms of our shareholders or partnership agreement?
- What is dissolution?
- What is insolvency in business?
- What is the best way of chasing overdue payments before they cause serious cash flow problems?
- What should the partnership or shareholders agreement say about someone leaving the business?
- What would it be reasonable to agree to in a shareholders agreement in order to attract an outside investor?
- Will any new partners or shareholders be bound by an agreement drawn up before they joined the business?