Navigating financial difficulty

Lawyer Geoff Hardy provides some sage advice on what the law expects of company directors when it all gets too hard

If you’re doing anything more complex than gardener-type jobs, then landscaping is a risky business. If you have to commit to a fixed price on bigger projects, then you run the risk of having under-priced the job. If you are doing it on a cost reimbursement basis then you run the risk of major budget blowouts. Either of these can result in tensions with your client and ultimately unpaid invoices and expensive disputes. Sometimes these make such a big hole in your cash flow that you can’t pay your bills as they fall due. And when you get to that stage, technically you are insolvent. If you are technically insolvent, there are expectations and limitations around what you can and can’t do. Read on to find out what the law expects of company directors at this point.

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