Misfeasance is breaching your fiduciary duties as a director. For example, you may have withdrawn money improperly from a company. Alternatively, may have incurred misappropriation of company funds, for purposes not consistent with the business.
Areas that are Investigated by the Appointed Liquidator
You may have already been questioned in person, or responded to written questions from a Liquidator. On application by the Liquidator, the Court can compel the directors to repay, restore or account for the money or property. Or simply, contribute without financial limit, such sums to the company’s assets by way of compensation.
Letter of Claim Received
You may be aware this allegation. Or may only find out about it when you receive a letter of claim from the Liquidator. Enquiries are received where financial advice has been previously given by an Accountant. However, events have meant that the advice could not be completed. If you are concerned that you may have be accused of Misfeasance, breaching your fiduciary duties as a director, then you should obtain legal advice at an early stage.
It is also important to respond to the letter of claim immediately. This is from when you receive it from the Liquidator. In failing to reply, the Liquidator may issue Court proceedings against you. This in turn may incur substantive legal costs. You should settle early, if you feel that a settlement is the inevitable outcome.
Our team can assist you if you have concerns about liability as a director may impact your business or future business opportunities. If you would like to have a confidential discussion with a member of our team, please complete our Contact Us Form. We will call you at a time that is suitable for you, or you can contact us directly on 01908 414990.
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