Directors’ Responsibilities

In their capacity as directors of a Company, directors owe certain duties to the company.

However in insolvency, the Company’s principal duty is to its creditors and not the company or its shareholders. Additionally, a director may incur personal liability for continuing to trade when the company is or nearing insolvency.

Therefore as soon as a director is aware or fears that the Company has no reasonable prospect of avoiding insolvency, they must talk to the Company’s board and take immediate independent advice. It is important that they also talk to our business management team or Relationship Manager, who are experienced at helping companies in times of financial difficulty.

Below are some practical considerations that may help directors comply with their statutory obligations both in identifying instances of financial distress and dealing with such instances when they cannot otherwise be avoided.

Get in touch

If you are experiencing any financial difficulties it is important that you contact your named Relationship Manager or call our business management team on 0345 072 5555 as soon as possible, as well as get independent legal and financial advice.

We are available from 8am to 8pm Monday to Friday and 9am to 2pm on Saturday.

Early identification of financial difficulty

Early identification of financial difficulty

Directors should be aware of early warning signs as financial distress can have significant implications for both the company and personally for directors.

Read our guide about the early warning signs of financial difficulty

This page provides you with a broad overview of Directors' responsibilities where a company is in financial difficulty. It is not designed to constitute legal advice and as such if your business is experiencing financial difficulty it is recommended that you always seek independent legal and financial advice.

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Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB:

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.