The insolvency service will send formal questions to directors before deciding whether to commence a director disqualification claim. It is critical to respond correctly to these. Many directors inadvertently say things which turn out to be highly damaging to their cases. Our expert legal advice early on can save huge time, effort and expense later.
One of the most astute appointments I have ever madeA company director we successfully defended against disqualification
The first experience a director will have of the threat of a disqualification claim against them will be when s/he receives a letter or questionnaire from the Insolvency Service (or its lawyers).
These questionnaires seek answers to questions about the previous failed company.
Avoid making common mistakes
It is vital that early advice is taken at this stage.
- often, (and with the best of intentions), former directors will complete and return the director disqualification questionnaire with comments that may inadvertently say things which can be potentially harmful to them;
- this can lead to significant difficulties later on and any responses can be referred to in legal proceedings if they are issued against that director. They can increase the risk of a formal disqualification order being made;
- alternatively, the comments can jeopardise the likelihood of negotiating a low period of director disqualification by way of a voluntary undertaking.
Directors must remember that disqualification proceedings are brought to protect the public, not “prosecute the guilty”. Whilst your comments may appear reasonable, in terms of corporate decision-making or public risk you may by accidentally make the situation worse.
At Francis Wilks & Jones, we deal with many questions raised by the Insolvency Service and sent to former directors. We can advise you through this very important process which, if it is dealt with properly, often can lead to the threat of director disqualification being dropped entirely.
Our specialist director disqualification team is here to help you. Call us today to speak to our leading team of experts. Alternatively e mail us with your enquiry and we will call you back at a time convenient to you.
I was greatly impressed with the commercial, tactical and technical ability of the team at FWJ. They quickly got to grips with a complex set of facts and, through their hard work, had the proceedings against me dropped and a significant proportion of my legal fees repaid. I couldn’t recommend them highly enoughA director we defended against a disqualification claim and other claims brought by a liquidator