Lucy Gannon of Maxwell MacLaurin has warned company directors of the need to be more aware than ever of changes in the law regarding their responsibilities.

Gannon, who featured in The Firm's 30 UNder 30 feature profiling younger lawyers, said direcotrs face heavy fines or imprisonment if they do not follow the law. 

“A director found guilty of wrongful trading may incur personal liability – regardless of whether or not the company is limited - for the debt racked up by the company after the point he knew or ought to have known there was no prospect of avoiding insolvent liquidation," she said.

"Degrees of responsibility vary, for example a qualified finance director who has regular access to financial figures may in these circumstances have a higher duty of care than say a creative or HR director. However regardless of your role, if you are concerned about the way the company is trading, don’t resign and hope for the best. Actions of past directors will be scrutinised if the company becomes insolvent later.”