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My questions are
1-why would some companies need to go through corporate insolvency?
2- If one director has about 5 companies gone into liquidation under his directorship although all debtors paid, does that make him a risky director? or unhealthy record as a director?
My questions are general and I have not mentioned any name as it is evident from my question. So i really do not understand your comment when you say you cannot comment on an individual director. Also I did not mention one company and mentioned several companies so really luck does not come to it. As I said my question is general. I can understand this is not the area of your expertise. Please can you leave the question open for others to reply.
Well, I was being professionally cagey! Any of the professional accounting institutes could point you in the direction of an appropriate practitioner.
I would personally to be inclined to avoid that particular person as a director. Remember Napoleon's old adage when inquiring about a general's ability asked 'Is he lucky?' The same principle could well be applied to a director.
Thank you for your support.
haha Thank you! Wise words!
However I still do not understand if a company can pay all its debt why do they choose to enter into voluntary liquidation and appoint a liquidator to look after the affair and pay debt. I assume when a company is linked to a liquidator, this is not good for them whether all the debt is been paid or not. Right?
It does matter to the reputation of a director. Doesn't it?
If a person records indicates several companies liquidated under his directorship that could make him look risky or incompetent right?
I suppose my question is why they do not pay the debt themselves and close the company rather than call the liquidator which does not sound nice I suppose. Is there any benefit in calling liquidators?
But if a company can pay its debt is not insolvent right? They are solvent. That it what I like to understand that why they appoint liquidators when they are solvent?