Introduction
Business difficulties require immediate, responsible action from directors. UK law expects directors to take proactive measures to protect the company.
Step 1: Assess the Situation
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Evaluate cash flow, liabilities, and creditor pressure
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Review operational efficiency
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Analyse market and financial trends
Step 2: Seek Expert Advice
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Financial restructuring
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Debt management
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Insolvency protection
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Business turnaround planning
Step 3: Protect Company Assets
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Avoid undervaluing asset sales
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Do not transfer funds inappropriately
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Prevent preferential payments
Step 4: Explore Rescue or Closure Options
Rescue: Restructuring, refinancing, cost reduction, CVA
Closure: CVL, voluntary strike-off
Conclusion
Directors must act responsibly and professionally. With early intervention and expert guidance, businesses can be saved or closed in a legally compliant, ethical manner.