The Companies Act 2006 makes provision for criminal liability on the part of directors and other officers of a company arising from a number of activities.

John Veale of Kangs Solicitors comments upon liability for failing to disclose any personal interest in a company transaction and following accounting failures.

The Law | Kangs Company Offences Advisory Solicitors

Failing To Disclose An Interest

Section 182 provides that a director must declare an interest in an existing transaction or arrangement where:

  • that person is in any way, directly or indirectly interested in it
  • an arrangement has been entered into by the company, the nature and extent of the interest.

Section 183 creates the offence where a director:

  • fails to comply with section 182
  • commits an offence.

Penalites For Breach:

The offence may be tried either before a Magistrates’ Court or a Crown Court and will attract a fine in both courts.

Accounting Offences

Section 386 provides that:

  • every company must keep adequate accounting records,
  • sufficient to show and explain the company’s transactions,
  • with reasonable accuracy,
  • and sufficient to enable the directors to ensure compliance with the statutory requirements.

Section 387 provides that:

  • where a company fails to comply with any provision of section 386
  • an offence is committed by every officer of the company who is in default.

Penalites For Breach:

  • Magistrates’ Court – a term of imprisonment not exceeding twelve months and a fine not exceeding the statutory maximum.
  • Crown Court – a term of imprisonment not exceeding two years and/or a fine.

How Can We Help? | Kangs Company Offences Defence Solicitors

At Kangs Solicitors we field a team experienced in dealing with Company Act and Regulatory Offences of all categories throughout the country on a daily basis.

Should you find yourself facing an investigation, it is essential that you seek experienced representation from the outset, given the possible penalties that can be handed down by a court following conviction and the potential for Director Disqualification Proceedings which may also arise.

Please do not hesitate to contact our team through any of the following who will be pleased to speak to you:

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888