Directors in danger
Article Abstract:
The growing number of insolvent British companies places directors of corporate boards at greater risk of being held directly accountable for civil and criminal liabilities. British legislation has imposed a variety of statutes designed to hold directors personally liable when their companies go into insolvency liquidation. These include the Companies Act 1985, the Insolvency Act 1986, the Theft Act 1968, Financial Services Act 1986, the Company Securities (Insider Dealing) Act 1985, the Environmental Protection Act 1990 and the Water Act 1989. The greater risk to which directors are exposed to in this time of recession is illustrated in the case on tort liability of Morgan Crucible Company PLC vs Hill Samuel Bank Ltd. Providing the greatest risk to civil liability for directors is the issue of wrongful and fraudulent trading, specifically when companies trade during their insolvency.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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LLP comments mixed
Article Abstract:
The UK Dept of Trade and Industry's proposals regarding limited liability partnerships (LLP) have elicited mixed reactions. Most of those who commented on the department's LLP document support the introduction of this new business form. However, they strongly oppose some of the proposed measures, including the recommended safeguards for creditors. Coopers & Lybrand, for instance, claims that the proposed two-year clawback will hurt rather than help creditors because it could hasten the bankruptcy of inherently profitable LLPs. Clark Whitehall also thinks that these measures are burdensome and suggests instead the introduction of a minimum capital requirement to be determined by the LLP based on its commercial needs. The ACCA likewise supports the introduction of the LLP but rejects the proposal for the LLP status to be granted only to regulated professional practices.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
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Directors' pay: all change on disclosure
Article Abstract:
'The Company Accounts (Disclosure of Directors' Emoluments) Regulations 1997' introduces new rules for the disclosure of corporate directors' emoluments and other benefits. The new requirements still include the disclosure of the highest paid director's emoluments, but eliminate the disclosure of emoluments in bands of 5,000 pounds sterling as well as a detailed reporting of the chairman's emoluments. The information required by the Regulations include the aggregate amount of emoluments paid to or receivable by directors with regard to qualifying services, the aggregate amount of their gains on the exercise of share options, and the aggregate value of company contributions paid to, or treated as paid, to a pension plans regarding the directors' qualifying services. The new rules take effect for all companies for accounting periods ending on or after Mar. 31, 1997.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
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