Bankruptcy and Shadow Directors

Know about bankruptcy and eligibility for Shadow Director

If the company is “accustomed to act in the accordance with the persons instructions or wishes”, that person would then be classed as a Shadow Director.

However where or when a person conveys their instructions or wishes, then the board makes a decision within independent consideration on its own basis, it would not be an example of acting in accordance of another persons instructions.

For a party to be considered as a shadow director–

1. There must be a pattern of compliance over time to the instructions and wishes from that person.

2. Their direct instruction must be direct cause for the relevant decision to be made.

3. They do not need to control all of the directors, only the majority of them

4. Their instructions must directly correlate to the company’s corporate activity

Making corporate decisions and giving advice for another company should only be given if you are certain it would fall outside the classification of being classed as De Facto or Shadow director, or you could be at risk of director’s personal liability.

In the current corporate environment diligent care must be taken to ensure you are protected against unforeseen events. You can take steps to protect not just yourself, but your business and your assets through strategically structuring your company.

If your creditors have already commenced proceedings to satisfy their debts, contact Insolvency Professionals. Our proven strategies and methods in dealing with these events is not only an efficient and effective solution, also a painless procedure which will take the financial and emotional weight off your shoulders. The Insolvency Professionals are here to eliminate your vulnerability for creditors to personally attack you with a barrage of claims and litigation, giving you a chance to get back up and running as if the event never occurred.

At Insolvency Professionals we work for you and with your best interests at heart. With our proven strategies and methods combined with our expert knowledge and extensive experience in all types of liquidation and corporate administrations, we can provide complete and comprehensive solutions for any type of liquidation to achieve the best possible result, giving you the opportunity to leave the residual effects from past dire financial situations behind, with a bright future ahead.