Peter Rayney explains how to deal with overdrawn shareholder/director’s loan accounts in a winding-up scenario.
In the current Covid-19 environment, we are seeing a lot more owner-managers liquidating ‘their’ companies. In many cases, business owners were already approaching or contemplating their intended retirement, and the impact of Covid-19 has simply accelerated these plans.
Some may have been fortunate to secure a ‘distressed sale’ of the business, enabling the business to continue in some form. The real benefit here would be to ensure the future employment of the workforce and avoid redundancy and other closure costs.
On the other hand, with perhaps the potential threat of insolvency looming, a number of owner-managers have opted to permanently cease trading. It is not