HomeCase studiesSMEs, directors & shareholdersCommercial litigationNegotiating a reduction in the disqualification term sought and costs with just one week’s notice

Why the client needed our help

Our client was a director of a company which was liquidated in 2005 but which was then restored to the Registry of Companies following which director disqualification proceedings were issued against him.

Our client had elected to deal with the proceedings himself and only instructed FWJ one week before the case was due at trial. The Insolvency Service were seeking a disqualification of 12 years against him which is in the upper bracket of the disqualification range and a period reserved for the most serious of offences.

How we helped

Whilst it was not possible to draft any further mitigating evidence on behalf of our client due to the lateness of instructions, FWJ entered into negotiations with the Insolvency Services solicitors to attempt to lower the period of director disqualification undertaking into the middle bracket (6-10 years) in return for not proceeding with the trial of the matter.

The outcome

The Insolvency Service agreed to lower the period of director disqualification undertaking on offer to 9 years which, whilst still severe, meant that our client was at least in the middle bracket of the disqualification range.

FWJ also negotiated a favourable cost outcome for our client, reducing the costs he was liable for by £5,000 and negotiating a repayment schedule at £1,000 a month, thus avoiding the potential threat of bankruptcy against him.

FWJ were very hands-on, getting involved from an early stage in seeking to avert an expensive set of litigation proceedings. I am more than happy to recommend their services, particularly when it comes to considering complicated issues or complex proceedings.

A client who was facing a liquidator claim for the improper withdrawal of sums from a company. We had the claim dismissed

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Stephen Downie

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