Claims Against Directors

If you are a Director of a company that is facing financial distress it is absolutely crucial that you understand your duties and responsibilities to the creditors of the business.  Get it wrong and you could find yourself at the wrong end of a claim against you as a Director.

So if the economic environment has worsened in your sector and your business has been squeezed to such an extent that insolvency is a real possibility, you need to take the very best advice.

Director’s Duties

If you are a director, it is vital that you understand the particular aspects of your duties that will arise when insolvency is likely or inevitable.  You have to know who you can make payments to and when you can make them, you need to understand whether or not you should continue to take supplies on credit and to whom the stock that you are ordering might belong to get.

Claims Against Directors

Get it wrong and you could be in breach of duty or claims might be made against you for continuing to trade when it was either wrong or even fraudulent to do so.  Personal liability can flow from such eventualities and thereafter, the secretary of state may consider your failings to understand your duties are so serious that Directors Disqualification proceedings are appropriate.

Personal Liabilities

As well as these claims that arise under the insolvency legislation, many directors in SME’s are owner managers who may have personally guaranteed some of the businesses liabilities.  If insolvency is on the horizon, you need to understand where it might leave you if guarantees are called in.

How We Can Help

Taking prompt advice is essential when your company is in distress.  We can advise you on your strategy, help you in making problematic decisions and give you all the support that you will need to ensure that you might avoid personal liability arising from claims against Directors.

Talk to Tollers

At Tollers we offer advisory services to Directors of distressed companies prior to insolvency guiding them in the right direction and ensuring that they understand their duties when faced with insolvency.  Equally, if the business is already in administration or liquidation, Tollers can be called upon by directors who have concerns arising out of the insolvency process.

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Our Claims Against Directors Experts

Damon Watt
Partner
With over 18 years of experience working in insolvency, Damon advises directors, shareholders and officeholders on all matters relating to business rescue and insolvency...
Duncan Nicholson
Managing Partner
Duncan joined Tollers as a Partner in 2006 in order to provide specialist advice on Corporate Recovery and Insolvency matters...
Damon Watt
Partner
Duncan Nicholson
Managing Partner
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