What are the legal ramifications for solvency issues?
If a trading entity, from time to time, finds itself facing solvency issues there are important legal ramifications to the directors and proprietors from carrying on business. It is important to identify these issues and mitigate the risks.
We have also experienced the desire of proprietors to introduce additional capital without carefully considering what steps can be taken to secure the additional monies being introduced.
There are a range of options available which include taking formal securities over the company or assignments of existing financer's securities in consideration of further funds being introduced.
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