Placing My Company into Creditors Voluntary Liquidation (‘CVL’)
Attributable to the impact of the Covid-19 Pandemic on the world as we knew it, my health and industry, I was left with no option, but to reluctantly place one of my companies into Creditors Voluntary Liquidation (‘CVL’). This was not only a decision that impacted me and my family, but the local community in which we resided. As the Company provided jobs, work experience for local high school students, employment and faith in a largely deprived area that has lacked government funding and interest for numerous years.
Correspondence Received from the Insolvency Service (‘IS’)
I was struggling to come to terms in having to place my company into CVL and having to face my local community for whom the Company provided opportunity and hope. This was heightened when I received correspondence from the Insolvency Service (‘IS’) confirming that they were investigating my conduct as a director with a view to issuing Director Disqualification Proceedings against me.
Impact on Me, My Family and My Employees
I was obviously very scared and alarmed. My fiancée was expecting our first child and in the event that I was disqualified, I would no longer be able to provide for any of us. Furthermore, I had a separate company that had been trading for a number of years, that I had built from the ground up, nurtured and employed up to 10 employees. In the event that I was disqualified, I would have had to close that company also to include those 10 employees losing their jobs.
What I Did
At the outset, I thought that I could deal with matters alone and without the assistance of legal advice. Engaging with the IS it quickly became apparent that I was unfamiliar with the process and the best opportunity to protect myself, my family and my employees was to instruct solicitors. I made online enquiries and carried out my own research. It was at this point that I made contact with Gulshan Kumar (‘Gulshan’). Gulshan was quick to recognise the issues, put me at ease and explained the process to me in a logical and understandable manner. To include the legal framework, my potential litigation risks and the steps I could and should actively take to protect my position. This professional, but friendly approach by Gulshan was very much what I needed at a time of heightened emotion and distress.
What Happened Next
Gulshan liaised with the IS and provided a much-needed buffer zone between us. This also enabled us time to develop a strategy to deal with matters. There was an initial reluctance by me to meet with the IS, but Gulshan reassured me that attending a meeting would assist hugely in protecting my position and convincing the IS not to issue Disqualification Proceedings against me. We did not simply attend the meeting as I had first envisaged. Gulshan controlled the process, to include undertaking much preparatory work prior to the meeting. To include liaising with me, my accountant and preparing submissions to be sent to the IS ahead of the meeting. That helped set the tone, background and context before the meeting had even taken place. This methodical approach assisted hugely in presenting the facts to the IS in an efficient, informed and co-ordinated manner.
The Result – No Director Disqualification Proceedings to be Issued
At the outset I was convinced that I had not done anything wrong. By the end of the process, Gulshan had assisted me in communicating that belief to the IS. That resulted in the IS confirming that it had altered its position, and now considered that the facts did not support the issue of Disqualification Proceedings against me.
Relief for Me and My Family
Thank You, Gulshan I now find myself being able to continue trading without fear, openly and without restriction providing for me, my family, and my 10 employees. Anyone who finds themselves in a similar position should not hesitate to contact you. I did!