Although a limited corporate structure gives members/shareholders limited liability it doesn’t mean that the directors are not potentially liable for their actions in managing the company.
A liquidator may bring a claim against a director for:
- fraudulent trading;
- wrongful trading;
- transactions at an undervalue; and
- extortionate credit transactions.
The Liquidator is duty bound to make investigations into the affairs of the company. If those investigations unravel evidence to suggest that the directors, or a connected party, has breach one of the above statutory offences then the Liquidator will have no option but to pursue the matter.
We frequently advise Insolvency Practitioners and directors in relation to the above mentioned claims. We pride ourselves on the service we provide and our detailed and robust approach to reaching the best outcome for our clients.