eclaring transactions by a company to be avoided on the ground they were at an undervalue, were an unlawful preference or created a floating charge for insufficient consideration.[26] The cash flow test is

The causes of corporate failure, at least in the market segment of the economy, all begin of the creation of credit and debt.[19] Occasionally excessive debts are run up through outright embezzlement of the company's assets or fraud by the people who run the business.[20] Negligent mismanagement, which is found to breach the duty of care, is also sometimes...

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sonal injury. When the company has no money left, and nobody else can be sued, the creditors may take over the company's management. Creditors usually appoint an insolvency practitioner t

Companies are legal persons, created by registering a constitution and paying a fee, at Companies House. Like a natural person, a company can incur legal duties and can hold rights. During its life, a company must have a board of directors, which usually hires employees. These people represent the company, and act on its behalf. They can use and deal...

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act on its behalf. They can use and deal with property, make contracts, settle trusts, or maybe through some misfortune commission torts. A company regularly becomes indebted through all of these ev

Corporate insolvencies happen because companies become excessively indebted. Under UK law, a company is a separate legal person from the people who have invested money and labour into it, and it mediates a series of interest groups.[15] Invariably the shareholders, directors and employees' liability is limited to the amount of their investment, so...

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