Types of Claim Against Directors
FWJ have a comprehensive understanding of the risks faced by Directors and can advise them both in the course of trading or where a claim is made against them personally. Often, for the best of intentions, Directors will try and deal with any threatened claims themselves without the benefit of legal advice. Unfortunately this can often end up increasing the prospects of a claim being made as harmful things are inadvertently said or written down which are then used against the individual concerned.
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The main areas of risk faced by Directors are as follows:
Claims by HMRC Read more
HMRC has numerous powers to secure or enforce company tax liabilities against Directors under the relevant tax acts including claims for sums due under Personal Liability Notices, VAT Security Deposits and taxes due on Directors Loans. We can advise you of these claims and if your case requires it, refer you to trusted professional tax advisors as well.
Claims by Liquidators/Administrators Read more
Liquidators and Administrators of insolvent companies have numerous powers to bring proceedings against Directors personally for transactions, often referred to as Antecedent Transactions, that may have preceded the commencement of the insolvency proceedings. To read more about these clams, visit our page entitled Claims by Liquidators and Administrators. We can assist in all types of claims commenced or threatened by Liquidators or Administrators.
Director Disqualification Claims Read more
Director Disqualification claims may be brought by the Secretary of State following the insolvency of a company. In addition, legislation has been introduced that provides for any director being disqualified to also be subject to proceedings seeking a Compensation Order reflecting the losses caused to the Company. Francis Wilks & Jones is the country’s leading experts on Director Disqualification. Please see our page entitled Director Disqualification for more information.
Creditor claims Read more
Creditors have the ability to issue legal proceedings against Directors personally for a breach of common law duties of care (for example the Tort of Deceipt) and under certain legislation (for example Misfeasance).
Creditors may have additional contractual remedies against a Director. It is quite common for Directors to be required to provide a Personal Guarantee over their personal property or provide security over their home for company lending or in respect of large transactions.
Taking early steps is vital in protecting your position as a creditor, both in terms of improving your priority in the event of an insolvency, ensuring you can enforce your claim against existing assets, ensuring any documents are correctly drafted at the beginning of the trading relationship and ensuring the correct contractual procedures are adhered to when demanding repayment. At Francis Wilks and Jones we can assist with all of these aspects to ensure your position as a creditor is best protected.
Prosecutions by Companies House Read more
The Registrar of Companies has a wide variety of powers to bring prosecution proceedings against directors for failing to properly carry out their statutory requirements including the requirement to file Annual Financial Accounts and Annual Returns. Should they commence any such proceedings then the Magistrates also have the power to disqualify the defendant from acting as a director for a period of up to 5 years. Our booklet on Prosecutions by Companies House deals with this in more detail. At Francis Wilks & Jones we have considerable experience of director disqualification matters and can also advise you on the steps to mitigate such risk or attend the hearing to make representations on any threatened disqualification.
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