Helping you deal with claims brought against you by Insolvency Practitioners
As if the Liquidation wasn’t bad enough, what happens if the Liquidator threatens to bring claims against you for misfeasance or disqualification?
Misfeasance can apply to any misconduct by a Director which leads to a loss to the Company or its creditors as a whole, which can lead to a claim against the Director personally.
It can include:
- Concealing or removing company assets
- Doing business on behalf of the company which causes loss to third parties
- Preferences…paying a creditor off in priority to other creditors
- Transactions at Undervalue…selling assets to associates for less than market value
Director Disqualification can happen for a number of reasons, including those above, but most commonly due to unfit conduct in the running of the insolvent business.
It can include:
- Failure to keep, maintain, preserve or deliver up accounting records
- Failure to pay HMRC debts
- Misappropriation or retention of company money or property
- Mis-selling or misrepresenting sales to customers
- Wrongful trading
This is a complex area which can have a serious impact on the life of any Director…both personally and in business; it could lead to the loss of the family home or possibly Bankruptcy.
As always the key is to take advice early and attempt to negotiate the threat before it reaches court.
Do not ignore the pre-action letters, the sooner you respond the more options you may have. I can help you decide your objectives, whether that be to settle in full or in part or make a complete response and denial of the claim.
If you would like me to help you decide what to do next please contact me or call me on 07778 999883 for an initial discussion. If necessary I can introduce you to specialist legal professionals who I work with on a regular basis.