As the result of an investigation following the liquidation of his company our client faced allegations of making preferential payments in breach of the Companies Act 2002 and wrongful trading in breach of the Insolvency Act 1986.

Tim Thompson of Kangs Solicitors outlines the circumstances.

Anyone who is the subject of an investigation or anticipates such an investigation for alleged offences under any company or insolvency legislation should seek immediate expert legal guidance and advice. 

Our award-winning team of solicitors is nationally recognised for its work in Civil, Criminal and Regulatory investigations and court proceedings.

We are here to assist you with these issues and our team of experts can be contacted for confidential and discrete advice as follows:

The Liquidator’s Claims | Kangs Liquidator Investigation Solicitors

Our client faced claims for allegedly:

1) Authorising and allowing Connected Party Payments contrary to Sections 172, 173 and 174 of the Companies Act 2006.

It was alleged that our client authorised substantial illegal payments by way of preferential payments to parties connected to the company which were detrimental to the claims of other creditors. For further information on preferential payments, please visit:

2) Wrongful Trading contrary to Section 214 Insolvency Act 1986.

It was alleged that our client continued to trade after it ought to have been clear that there was no reasonable prospect of creditors being paid given that the company was insolvent. For further information on wrongful trading, please visit:

Satisfactory Resolution of The Claim | Kangs Insolvency Solicitors

On behalf of our client, the team at Kangs Solicitors:

  • attended our client and obtained his detailed instructions,
  • examined in detail all of the material provided by our client and the liquidator,  
  • advised our client upon his position, and the appropriate manner in which to proceed in order to secure the most favourable outcome available to him,   
  • following detailed negotiations, reached an agreement for settlement which was favourable to our client as it involved payment of an amount substantially less than that claimed and provided our client with an acceptable period for payment to be made.

Needless to say, our client was very happy with the result achieved for him by the Kang’s team.

Who Should I Contact For Help? | Kangs Insolvency Litigation Solicitors

The team at Kangs Solicitors regularly assists clients facing allegations of breaches of aspects of Companies and Insolvency Law of every description, including Director Disqualification Proceedings.

Please feel free to contact our Team through any of the following who will be happy to provide you with initial advice whatever the nature of your problem. 

Hamraj Kang
07976 258 171 | 020 7936 6396 | 0121 449 9888

Stuart Southall
0121 449 9888 | 0161 817 5020

Tim Thompson
020 7936 6396 | 0121 449 9888