Directors of a company have an absolute obligation to look after the interests of the creditors of that company.
The directors of a company which had been trading since 1995 but fell into insolvency in 2016 found themselves the subject of Director Disqualification Proceedings as the result of the manner in which they had handled funds received by the company.
Tim Thompson of Kangs Solicitors briefly discusses the circumstances.
Anyone who becomes the subject of Director Disqualification Proceedings, or anticipates that such proceedings may be commenced, should seek immediate expert guidance.
The team at Kangs Solicitors, national recognised for its work in civil and criminal proceedings and regulatory investigations, is renowned for assisting clients in all aspects of alleged company legislation breaches and the defence of Director Disqualification Proceedings.
We are here to assist you with these issues and our team can be contacted for confidential and discrete advice as follows:
The Circumstances | Kangs Insolvency Solicitors
- Although the insolvent position in which the company found itself in 2016 was not specifically the result of any misconduct on the part of the directors, they allowed it to continue to trade, in breach of advice which had been given and statutory requirements.
- Funds received during this period of insolvency were improperly utilised for trading and discharging debts which did not fall for preferential payment upon liquidation to the detriment of other creditors of the company.
- In view of this improper trading and conduct on the part of the directors, Director Disqualification Proceedings were initiated against all three of them which resulted in a combined period of disqualification of seventeen and a half years.
Official Comment | Kangs Insolvency Offences Defence Solicitors
David Brooks, Chief Investigator at the Insolvency Service, said:
‘When the company became insolvent, the directors were specifically instructed not to do anything that was detrimental to creditors. However, they decided to completely disregard that advice, putting their creditors at risk.
These disqualifications should serve to further underline that such behaviour is unacceptable and we will seek disqualifications against those directors that do not uphold their duties.’
How Can We Help You? | Kangs Insolvency Disputes and Litigation Solicitors
The Kangs Insolvency Team are regularly engaged:
- advising clients on allegations of wrongful & fraudulent trading whilst insolvent,
- defending clients facing Director Disqualification Investigations & Proceedings,
- representing clients in Insolvency Interviews & Court Examinations,
- advising in relation to Claims against Company Directors brought by liquidators,
- representing clients in civil and criminal investigations by the Insolvency Service,
- acting for clients in both the commencement and defence of court proceedings affecting issues of company law and insolvency law breaches of every conceivable nature.
Who To Contact? | Kangs Insolvency Law & Director Disqualification Solicitors
We welcome new enquiries by telephone or email.
Our team of lawyers is available to meet at our offices in London, Birmingham or Manchester or, alternatively, we are happy to arrange an initial no obligation meeting via telephone or video conferencing.
If you require any advice or assistance in relation to any of the issues referred to in this article, please feel free to contact our team through any of the following who will be happy to provide you with some initial advice: