It is possible to defend threatened public interest director disqualification claims but you do need specialist help as they are very serious applications. Our brilliant team has been advising directors on public interest petitions and disqualification claims since 2002. Let us help you too.

Francis Wilks & Jones acted with great professionalism, responding quickly to my requirements, leading to an eventual withdrawal of the claim against me and my son. I am extremely grateful

A client who approached us just two weeks before the trial of a large director disqualification claim against him and his son

The term “Public Interest” is pervasive to many areas of the legal framework within the UK, extending from legislation granting or extending rights granted to the general public (in the public interest), the courts judicially reviewing interpretations of the law by government (as far as it may extend to procedure or the application of the law) through to specific litigation claims issued “in the public interest”.

Without these protections, which are under constant review and subject to ongoing change, the risks to individuals and companies in the UK will almost certainly increase. Whilst a precise list of such risks would be difficult to provide, without doubt they include financial fraud and prejudice to specific groups of people or organisations within the UK including the general public as potential customers of companies acting in a fraudulent manner.

In such circumstances it may be prudent for a winding-up petition to be presented to wind-up a company perceived to be liable for fraud, in the public interest.

Defending a public interest winding-up petition

Where a public interest winding-up petition is presented, there is no requirement to provide evidence that the company is insolvent or otherwise unable to continue trading in its present form. The only requirement is to demonstrate that the company is trading contrary to what the Secretary of State believes is the public interest.

In a majority of circumstances a public interest winding-up petition is properly presented against companies which are trading solely for the purpose of defrauding the general public. However, this is not always the case.

Quite commonly we see companies that may be selling new products, or seeking investment for projects that may take years to develop (indeed a lot of research and development companies exist in an insolvent state, reliant on investment with an uncertain outcome for the product they are trying to develop).

In such circumstances there are strong grounds to defend a public interest winding-up petition.

Consequences of a public interest winding up order

If a winding-up order is made by the court, whether it was defended or not the likely outcome is that almost certainly the Secretary of State will seek a disqualification order against the directors who ran the company.

Whilst a disqualification order is not guaranteed, directors would be wise to seek legal advice upon receiving notice of the intention to issue a disqualification claim based on the fraudulent misconduct.

If a director decides to cut his/her losses and offer a disqualification undertaking or is subsequently disqualified in proceedings then s/he faces the further risk of being subject to a compensation order.

Our other webpages describe in more detail the consequences of a director being disqualified.

Public interest proceedings generally

To understand the relevant stages leading to a Public Interest Winding-Up order, and the impact thereafter, please visit our webpages dealing with the following aspects of these types of proceedings:

At Francis Wilks & Jones we have extensive experience of these matters and are able to advise and assist on circumstances where you face the threat, or are subject to, public interest winding-up proceedings.

Please call any member of our director disqualification team for a consultation now for assistance. Alternatively please email us with your enquiry and we will call you back at a time convenient for you.

I was delighted by the work done by the team at FWJ and cannot recommend them highly enough. Their legal and tactical knowledge was spot on. I can now continue to grow my business free from the worry of my original disqualification

A director we defended against a disqualification claim

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