Directors Liabilities

Company Directors and Executives have obligations towards the company they manage and work for, it's shareholders, employees, customers, suppliers and Statutory Authorities. Breach of those duties can lead to civil and criminal actions against the director or executive and personal assets are at risk without limitation. A sample of the areas from which claims can arise include;

• Criminal Acts

• Health and Safety Acts

• Shareholders

• Taxation

• Companies Act

• Discrimination

Claims Examples

Engineers - Engineering manufacturers entered into factoring agreement with the claimant, but following the company going into administration, alleged that they used monies due to the claimant to pay other creditors.Director personally sued £300,000

Property Owners - Director of a property owning company breached his authority in appointing a company belonging to an employee to undertake work on their behalf.Proceedings issued by the claimant for non-payment of fees of £42,000 following cancellation of the contract

Clothing Manufacturer - Directors of a clothing manufacturer faced disqualification for trading whilst insolvent. It was also alleged that they failed to maintain their accounts in a satisfactory manner to enable the receivers to carry out their duties, leaving many creditors (including HM Customs and Excise) unpaid. £56,000 was paid in defending the Directors named in the proceedings.

Glazing Company - Director of a glazing manufacturer named personally in an unfair dismissal claim from a former employee.Costs incurred of £14,055 in defending the Director