The importance of formulating your best defence cannot be overstated. Being found personally liable for a company’s debts could lead to a director’s personal assets, including their home, being lost.
Further, a disqualification order will mean not being able to be in charge of a company (whether you are registered as a director or not) for a period between two and 15 years.
What our restructuring and insolvency lawyers do
Expert legal advice is essential for directors facing the threat of personal liability for company monies, or being disqualified from acting as a director.
DMH Stallard’s insolvency lawyers support directors of companies who, prior to the insolvency of their company, were protected by “limited liability”.
What they say
"They're able to explain any legal issue in non-legal terms that can be understood, and to conduct all matters in a commercially sensible manner"
Restructuring and Insolvency client
Our service is designed to help eliminate, or mitigate, these potentially devastating outcomes.
Our service for directors facing personal liability and/or director disqualification claims begin by assessing the strength of any claim by the liquidator/administrator or Secretary of State.
Where directors are being pursued for misfeasance/breach of company duties, we engage with the liquidators/administrators to negotiate the best possible settlement to avoid court proceedings
Where the Secretary of State is seeking a person’s disqualification from acting as a director, we engage with the solicitors acting for the Secretary of State to negotiate a lower period of disqualification or seek a dismissal of the application altogether if it is without merit.
How our restructuring and insolvency lawyers work
The expertise, knowledge and experience of our specialist insolvency lawyers are absolutely crucial in cases involving director liability or director disqualification.
We know the arguments that need to be formulated on a director’s behalf to seek to persuade the Secretary of State to either to discontinue their action or to accept an undertaking for a lesser period of disqualification than that sought by them.
We also know the way insolvency practitioners operate because we act for many of them in different capacities. This helps us to consider the claim from their side too, which increases the chances not only of settlement, but of settlement on the best terms.
Click here to read more about our other restructuring and insolvency services.
How we've helped
We acted for a director who was being pursued by a liquidator of a reinstated company for personal liability arising out of an employee benefit trust scheme. We engaged with the liquidator’s lawyers and reached an excellent settlement worth a fraction of the claim, payable over time.