Beating the Crunch
Friday, February 20th, 2009
BEATING THE CRUNCH
Sound advice from Carrick Read Solicitors and Insolvency Practitioners in this difficult economic climate
There is a danger that many businessmen and women could spend most of 2009 talking themselves deeper into a recession, at the same time loosening their grip on the effective management of their business. This year, perhaps more than ever before, business owners and managers need to be aware of the options for recovery, possible even corporate salvation, that exist. Hull-based Carrick Read are solicitors and insolvency practitioners who provide a rare blend of legal and corporate recovery skills which many companies might need in the coming months. Indeed, if, as it seems, ‘survival’ is to be the key word for many, then here are a few basic starting points.
At Carrick Read, we encourage our clients to be honest with themselves, to accept their financial position – good or bad – and to understand the potential pitfalls they face by continuing to trade when insolvent. Our experienced team will assist with the practical and legal aspects of downsizing operations where necessary. We will, on our client’s behalf, negotiate directly with pressing creditors and introduce formal processes to provide protection from those creditors until proposals can be put in place to tackle the survival of the business or its sale under Company Voluntary Arrangements and Administrations. Directors and owners need to be aware of the personal implications of ceasing trading and leaving behind unpaid liabilities and, if necessary, we will assist throughout the winding up process if a company is simply unable to carry on in business. These can be difficult and stressful times. Our job is to take away the pain and achieve the best possible outcome for our client.
REDUNDANCY RISKS
The downturn in the economy is expected to result in many companies being forced to trim their workforce in 2009. As a director or owner, you must make sure you do not leave yourself open to claims to Employment Tribunals where redundancies have been made but not in accordance with the statutory procedures. Carrick Read will help you reduce your redundancy risks. For example, any employee at risk of redundancy, including those on maternity or paternity leave and who is suitable for a vacancy, should be considered before other internal or external candidates. The old standard of ‘last in first out’ is insufficient justification on its own. Generally, if redundancy exercises are well planned with sound legal advice to the employer, then companies should not only avoid any challenge from those being made redundant but should also achieve as amicable closure to the relationship as possible in such circumstances.
Business Intelligence 16/02/2009
