Altion Law specialises in regulatory disputes and provides assistance to individuals facing director disqualification investigations or actions or are facing claims from liquidators in relation to sums alleged to be owed to the company. We have assisted many clients especially those who are facing investigations stemming from the use of a Bounce Back Loan (BBL) post covid.
Most of our clients facing director disqualification investigations or director liability claims will be individuals that have never experienced this area of law. Most are unlikely to ever have faced a scenario where the Government or a Liquidator specifically investigates and questions their action in detail. You may never have been in a situation where you have been asked to provide proof or evidence to justify or demonstrate why a particular action was taken. It is an unsettling position to be in and we understand that even researching this area can be deeply unsettling for many people.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
What should I look for when hiring or choosing a law firm or Solicitor for Director Disqualification situation?
Realistic advice. If you want to work with advisers who will just tell you what you want to hear, then that is not us. Our success is built on the right advice, even if it’s uncomfortable for you to hear. If you are unlikely to be able to achieve your aim, then we will set out why.
We will set out what will be the best outcomes you may be able to achieve in your situation with the evidence you have. We have had previous clients who have gone with other advisers and who have spent a lot of money with these other advisors, who told them what they wanted to hear, only to come back later and tell us that they wish they had listened to us.
Why taking legal advice from expert Director Disqualification Solicitors is necessary.
Our client was one of 2 directors of a company in the medical sector. The company had taken a back loan during COVID and was contacted by the Insolvency Service, to investigate the company’s application for the BBL. In particular the Insolvency Service questioned the turnover figures provided by the company and used on the bounce back loan application.
The company had used predicted sales figures on the basis the company had draft agreements with foreign purchasers in place, just before covid hit. However, as the company had been incorporated in 2018, the previous year’s turnover should have been used. As such, the company had applied and received more BBL than it was entitled to. This was potentially fraud.
The company tried to trade through the restrictions and effects of the pandemic but did not succeed and it was liquidated.
The client was very surprised to receive a letter from the IS out of the blue almost 8 months after the dissolution of the company, without any issues being raised by the liquidator as part of the liquidation.
The client was exceptionally concerned because they were also a director of another successful limited company employing several people in the UK and abroad. Any disqualification would also have had a negative impact on various regulatory requirements, as well as reputational damage professionally and personally. Our client was really worried about the effects of disqualification on their career and livelihood as well as the employees and customers it would have also affected. They decided to seek legal advice at an early stage to protect themselves as much as possible.
We spoke to our client, discussed the application, background and circumstances. We set out the relevant documentation they would need to provide and requested copies of the relevant evidence from our client to support their position. Our client went away and gathered this information. We then reviewed this documentation and discussed it again with our client. We were then instructed by our client to draft a letter in response to the director questionnaire and submitted this to the Insolvency Service.
The Insolvency Service took some time to consider the submissions. The Insolvency Service eventually wrote back to say the Director Disqualification Investigation was complete and no further director disqualification action would be taken against our client.
As such, our client was able to continue as a director with their successful business, and the employees and customers were not affected. Additionally, our client was not personally liable for any sums and will not incur any further legal costs. If they had to defend this in the courts, additional legal costs would have been incurred.
On the other hand, the other co-director did not seek legal advice straight away. The end result was they were disqualified for 10 years and were ordered to personally pay back the amount of the loan that the company was not entitled too. This was over £35k that the other director had to personally pay.
Donna Barnes, Solicitor from Altion Law stated
“This is a prime example for director disqualification of why it is so important to take swift action and to seek expert legal advice. As soon as you are contacted by the Insolvency Service or the Liquidators, taking early legal advice can save significant sums in the long term, as we can swiftly and efficiently establish and understand your position.”
How can I get legal advice on Director Disqualification?
These are serious allegations, which if disqualification proceedings are issued against you, will be heard in the Business Section of the High Court. Director Disqualification can have significant personal and professional implications and it is advisable that advice is taken promptly. There are often only 2-3 week timescale in which to respond. You are likely to need as much time as possible to gather evidence to strengthen your position. It takes between 3-5 days to speak with a solicitor once you have instructed legal advice so you will need to allow time for this. It is usually better to try and deal with these matter as early as possible, before it proceeds to court.
What is the process and what is the cost for hiring a law firm to handle Director Disqualification claims?
If you want to seek advice, contact Altion Law on 01908 414995 or email Hello@altion-law.co.uk. You will be able to speak with a member of the team who will be able to explain what documentation we will need and give an indication of initial costs for a solicitor to fully review and advise. Once you have instructed and our lawyers have reviewed your documentation and spoken with you, they will provided a more detailed cost estimate. Some matters in this area take several hours of a lawyer’s time to review and advise, but others can be more complex and will ultimately end up in court. Director Disqualification is a serious matters and varies significantly between cases. Much depends on the evidence you can show to support your position, so we cannot offer fixed price reviews.
What documents do I need to provide when hiring a Solicitor for Director Disqualification?
We will need to confirm your identity and take an initial payment on account to secure a lawyer’s time. You will need to have provided the letters from the Insolvency Service or the Liquidator and the response to the questionnaire you completed for the liquidator. Be prepared that this is an area where evidence to support your position is key. You are going to need to
Do I need ongoing legal advice regarding Director Disqualification matters?
We can assist you with this decision on a case by case basis. Some clients just want to instruct initial director disqualification advice and then will seek to handle the matter themselves due to cost. Others will instruct advice and representation for the entire life of their matter.
We can support you for as long or as short as is required. We have clients who have taken initial advice when they were aware it was a possibility that the company would enter liquidation, all the way through to those that are facing director disqualification court hearings.
What do I need to bring to any meeting with a Director Disqualification Solicitor?
We undertake most of our director disqualification work remotely. We can do this via teams or telephone calls. We will have asked you to provide it a variety of documents ahead of our initial consultation with you. The solicitor will have needed to review these in advance.
For many of our clients a director disqualification investigation can be overwhelming and they find it helpful to have a supportive person on the call with them, to assist with taking notes or to just also hear what is being said. We have no objections to this occurring as long as you inform us in advance so we can ensure if they need access to a call, we can facilitate this for them.
For a confidential free discussion, call us today on 01908 414990, alternatively email us at Hello@altion-law.co.uk or complete our Free Enquiry Form and we will call you back.
