receivership? Directors must make an early decision on whethert the business is insolvent.?

<BODY BGCOLOR="white" TEXT="black" LINK="blue" VLINK="blue" ALINK="blue" > <P><FONT FACE="Arial, Helvetica, sans-serif" SIZE="2"><A HREF="http://www.pclconsultancy.co.uk"><H1></H1></A>. Directors must make an early decision on whethert the business is insolvent. Under UK law, if a company is trading when insolvent, a director may be liable for wrongful trading. The director of a company which is facing financial difficulty should ensure that there is a reasonable prospect that the company will not be insolvent before being party to any decision to trade on. Failure to do so may result in the directors having to contribute personally to the company's losses and be heavily investigated by the Department of Industry (DTI). If the director knew or should have known that the company could not avoid becoming insolvent but still continues to trade then he or she must cease to trade immediately and take steps towards liquidating the company. Under UK law, if a company is trading when insolvent, a director may be liable for wrongful trading. Directors must make an early decision on whethert the business is insolvent. Running a company today can be volatile and it is likely that a number of companies will run into financial difficulty. If the director knew or should have known that the company could not avoid becoming insolvent but still continues to trade then he or she must cease to trade immediately and take steps towards liquidating the company. If the director knew or should have known that the company could not avoid becoming insolvent but still continues to trade then he or she must cease to trade immediately and take steps towards liquidating the company. Running a company today can be volatile and it is likely that a number of companies will run into financial difficulty. <a href="http://www.yahoo.com" target="_blank"><img src="image3.gif"></a> Directors must make an early decision on whethert the business. </FONT></P> <P ALIGN="CENTER"><A HREF="http://www.pclconsultancy.co.uk"><IMG SRC="image2.gif" BORDER="1" ALT=" Directors must."></A></P> </BODY>