HomeCase studiesSMEs, directors & shareholdersDirector servicesReducing liquidator claim by 50%

Why the client needed our help

Our client came to our firm after receiving a pre-action letter from the liquidator of his former company, which was demanding approximately £50k. The liquidator’s investigation had uncovered several transactions where money was paid to our Client, his father, and his mother-in-law, without clear evidence of the company’s benefit from these payments. The liquidator was considering legal action due to these findings.

How we helped

Once instructed, FWJ promptly communicated with the liquidator’s solicitors, informing them that we were now instructed and that we intended to address the allegations detailed in the pre-action letter. We highlighted the father’s medical conditions as mitigating circumstances and pointed out flaws in the liquidator’s claims, such as unspecified breaches, overlooked salary entitlements, and justifiable explanations for the transactions in question.

The outcome

Our strategic response initiated a constructive dialogue between the parties, marked by the exchange of without prejudice letters. This led to negotiations aimed at finding a mutually acceptable settlement. Ultimately, a Settlement Agreement was finalised, where the client agreed to pay around half of the initially claimed amount in a single payment. This resolution was favourable for our client, who was eager to resolve the matter swiftly and prevent any legal action against his father or mother-in-law.

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

Key contacts

Douglas McEvoy

Douglas McEvoy


Anamitra Mukhopadhyay

Anamitra Mukhopadhyay


Stephen Downie

Stephen Downie


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