Charities facing financial difficulties could find themselves thrown into administration in an effort to survive and continue pursuing their charitable endeavours in the future. Entering into administration is no easy decision for trustees to make, as it involves handing over complete control of the charity to an administrator. However for an insolvent charity, it can
Charities have noble aims and pursue worthy causes, but unfortunately, they are also at the mercy of market forces, economics, politics, and, ultimately, the generosity of their donors. If trustees and directors aren’t careful, the charity they are in charge of can slip into insolvency. Charities face the constant challenge of insolvency in the same
Despite working towards good causes, non-profit charities face the threat of liquidation just as much as profit-driven companies do. Poor business decisions, a lack of funding, or unprecedented events such as Covid-19 can all lead charities towards insolvency – and if the charity’s finances can’t be saved, then the final step is liquidation. The liquidation
It’s been a tough year for every sector of the United Kingdom’s economy, but particularly so for the retail sector. The twin effects of Brexit and a worldwide pandemic have caused countless bankruptcies amongst even the most high profile retail giants. Supposedly stalwart household names such as Debenhams, Top Shop, Burtons and Cath Kidston have
Compulsory liquidation is a type of formal insolvency proceeding that sees a company being wound up against the will of the directors and shareholders. Compulsory liquidation is a legal procedure that can only be approved through the courts. If successful, it results in the complete closure of a company and the sale of its assets.
Charity trustees are responsible for overseeing the running of a charitable organisation. Ultimately, they’re responsible for the success or failure of the charity in their charge. In order to be successful in their role, charity trustees have a number of obligations that they must fulfil as part of their appointment. These include moral and ethical