Other FAQs
The minimum number of directors is 1 and this rule cannot be
broken. Other than following this rule there is nothing to
prevent directors from resigning from the directorship.
Resignation from directorship does not change the director’s
responsibility to provide assistance to the Insolvency Practitioner and
most of the Insolvency rules and regulation apply to former as well as
current directors. Therefore there is little advantage to
resigning from office.
I have provided a personal guarantee, what normally happens?
The process depends on the party who has the
guarantee. Often the guarantee payment will be demanded
immediately.
In the event that money is paid to a creditor the person who provided
the guarantee will normally step into the shoes of the creditor – i.e.
if a director pays off a secured creditor then they would normally
become secured through subrogation.
If a guarantee has been provided legal advice should be considered to
ensure that the guarantee is valid.