As a director of an insolvent company, you are at risk if you do not act.
This risk RISES the longer you don't act to put the company into liquidation.
She says however, that employment contracts are suspended upon liquidation of the employer.
All banks will agree a deal to repay the PG over time - provided you work with the bank to reduce their exposure.
One great piece of FREE advice - always make sure that ALL tax returns, VAT returns and annual returns have been completed and sent in and that other "compliance" issues are dealt with wherever possible. This is clearly a general guide so, if you have any worries at all, please, just call us and we will talk you through the situation free and with expert guidance for your situation.
This is known as the "lifting of the veil of incorporation" that protects directors under limited liability.
If this happens then you could made liable for PAYE, VAT and creditors monies from the time that you should have known the company had no reasonable prospect of surviving the problems it faced.
If you fail to act and if eventually the company is wound up by the creditors (compulsory liquidation) then the Official Receiver (OR) will be appointed to liquidate the business and he or she will investigate the activity of the directors and the business over the last 2-3 years.