Director Liabilities- Claims Against Directors
Has someone accused you of breaching your duties and responsibilities as a director? Have they threatened to take legal action against you personally?
As specialist director’s liabilities solicitors, we can help.
When can a Company Director be personally liable?
A central pillar of company law in England and Wales is that a company has its own legal personality. But there are some circumstances in which directors can be sued personally.
You are most at risk if your company becomes insolvent. A liquidator or administrator will investigate your company accounts and be on the lookout for evidence of directors not complying with their duties and responsibilities.
In an insolvency situation, there are various claims that can be brought against directors. Some of the most common are:
- Overdrawn director’s loan accounts
- Wrongful trading
- Fraudulent trading
- Transactions at undervalue
- Unfair preference
- Personal guarantees
- Outstanding HMRC payments
Get help from specialist Director’s Liabilities Solicitors
Our solicitors work to defend directors every day. We know what we’re looking for and we anticipate what’s going to happen.
Whatever difficulties you’re facing, we’ll fight your corner.
Overdrawn Director’s Loan Account Claims
|Have you been told to repay your dividends? Don’t know how you can owe money under a DLA?|
|Get clarity now|
|You mustn’t continue trading when you know or ought to know your company is insolvent.|
|More serious than wrongful trading, fraudulent trading is a criminal offence.|
|Find out more|
|Has a liquidator accused you of breaching your fiduciary duties as a director?|
|Understand the position|
Transactions at Undervalue
|Thinking of selling company assets? Get them properly valued or you could face a claim.|
|Showing favour to some creditors and failing to treat everyone equally puts you personally at risk.|
|See what’s at stake|
|Signing a personal guarantee should never be taken lightly. Get clarity on the risks.|
|Be in the know|
Outstanding HMRC Payments
|Is your company falling behind with payments for VAT, NI contributions and PAYE?|
|Here’s what to do|
“I cannot be thankful enough to Rebecca and Altion Law for the service and help I received through a very difficult time.”
How to avoid Director Liabilities
Make sure you protect your own position. Here are a few do’s and don’ts:
- DO keep accurate and up-to-date books and records
- DO establish the reasons behind your business’s financial difficulties
- DO consider your company’s future prospects
- DO obtain an independent valuation of any assets your company plans on selling
- DON’T continue to trade or incur additional liabilities when your company is insolvent
- DON’T take deposits for orders you know you can’t fulfil
- DON’T pay one creditor to the detriment of other creditors
- DON’T incur further credit or issue cheques when you know there’s no prospect that they will be honoured
Experienced Solicitors who can act rapidly
There’s a right and a wrong way to handle an insolvency situation. Whatever your company’s particular circumstances, we can help you navigate through choppy waters and steer clear of becoming personally liable for your company’s debts.
If a claim has already been made against you, we can help you defend the charges. Together, we’ll determine the best approach for your specific situation, working to protect you and your family.
Take action today with a no-obligation call
Why not get the ball rolling today? Call us on 01908 414990 for a confidential discussion of your situation.
Not only is your first call free but in many cases we’re able to offer our clients an initial fixed-fee service. And where possible, we aim to help you save money. We’ll suggest things you can do yourself or your accountant can do for you.
“Altion Law were very professional and their advice was invaluable.”
Keeping things confidential
We understand how difficult it can be when someone brings a claim against you personally.
And we understand you might not have told your spouse or significant other about what’s going on. So if you want to make sure there’s no one else around when we speak, we’ll call you back. At a time that suits you.
Put yourself in the best possible position
Let us help you. We’re based in Milton Keynes but we can act for you wherever you are in England or Wales.
Don’t hesitate. Contact us today to discuss your situation and the next steps for putting the right legal and commercial strategy in place.