Defending Misfeasance Claims

Have you been threatened with a claim for Misfeasance?

Perhaps you have answered written questions from your company’s liquidator or administrator. Perhaps you’ve been interviewed in person. Or perhaps the first you heard of the allegation was when you received a letter of claim.

Whatever your situation, it’s important you seek expert legal advice as soon as possible.

For a confidential discussion with a solicitor, call us today on 01908 414990. Alternatively email us at or complete our free enquiry form, and we will call you back.

What is Misfeasance?

All company directors owe duties under the Companies Act 2006. A claim for misfeasance is an allegation that you have breached your fiduciary duties as a director – that you have in some way acted inappropriately with company money in the lead-up to company liquidation or insolvency.

Examples of misfeasance include:

  • Concealing company assets – trying to hide or remove particular assets from the business to stop them from being sold in a looming liquidation or administration.
  • Transactions at undervalue – disposing of an asset for less than it’s truly worth, again to divert assets away from creditors.
  • Unfair preference – repaying specific creditors before others, thereby giving them preferential treatment.
  • Excessive salary – taking a higher salary than your company can support, knowing it’s in financial difficulty.

Misfeasance is not a crime. But it can result in serious consequences for you personally.

What are the potential repercussions of Misfeasance?

If a claim is successful, the court can order you to reverse transactions or repay money to the company.

You can also be held personally liable for some company debts. Depending on your circumstances, that could put you at risk of personal bankruptcy.

There is also a risk of being disqualified as a director for between 2 and 15 years.

That’s why if you’re facing a claim for misfeasance or have concerns about how to comply with your duties as a director, it’s crucial to take expert legal advice as soon as possible.

Contact us today for a confidential discussion

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.