Wrongful Trading & Directors Liabilities

If a company becomes insolvent and goes into liquidation, a director may be deemed personally liable for ‘wrongful trading’.

This happens if it can be shown that, at some time before winding up proceedings began, they knew (or should have known) that there was no reasonable prospect of the company avoiding insolvent liquidation. In these circumstances a court can order the directors to make a contribution to the company’s assets.

The only defence to wrongful trading is if you can show that you took every action possible to minimise the potential loss to the company’s creditors. This makes it essential that as a director you have properly documented all the steps when your company faces the threat of insolvency.

How We Can Help

This is where Else Solicitors can help by advising you from the outset on best practice and compliance procedures.  We have experience of representing directors when their interests are different from the company, or where proceedings have been threatened or taken against them personally.

Our expert team understands the complexities and challenges when proceedings involve international trade or serious allegations such as bribery, fraud and corruption.

We can provide clear, jargon-free explanations of directors and officers liabilities and compliance procedures and review all your existing procedures and processes in a bid to avoid future problems.

We have experience of boardroom reorganisations and directors’ disqualification proceedings as well as involvement in investigations of business crime and professional negligence allegations.

To speak to a solicitor who specialises in wrongful trading  and directors liabilities cases, please contact the insolvency and business recovery team on 01283 526200, alternatively you can send us a message and we will get in touch at a time that suits you.

Winding Up Petition

A winding up petition is a formal document issued by the Court against a Limited company or a Limited Liability Partnership.

–
Learn More >

Director Disqualification

A company director can be disqualified, or banned, for up to 15 years if they do not meet their legal obligations.

–
Learn More >

Administration & Liquidation

When a company is struggling financially and unable to pay its debts, expert legal advice is vital.

–
Learn More >

Wrongful Trading & Directors Liabilities

If a company becomes insolvent and goes into liquidation, a director may be deemed personally liable for ‘wrongful trading’.

–
Learn More >

Company Restoration

Once a company is dissolved, or struck off, it no longer legally exists and the assets are passed to The Crown.

–
Learn More >

Retention Of Title Claims

If you have supplied goods and not been paid in full, you can apply to take those goods back if you have a properly drafted Retention Of Title (ROT) clause in your trading terms.

–
Learn More >

Insolvency & Personal Bankruptcy

Difficulties in paying the money you owe can arise because of redundancy, bereavement or a career change or because you have over-stretched your finances by taking out too many loans and other forms of credit.

–
Learn More >

Chris is the founding Partner of Else Solicitors and has over 25 years’ experience as a commercial solicitor dealing mainly with commercial disputes. He is also an accredited Mediator.

View full profile here
Chris Else

Managing Partner

View all

How can we help?

Get in touch.

At Else, we are specialists when it comes to business debt restructuring practices and insolvency legislation.

If you would like to speak to one of our business recovery solicitors contact 01283 526200. Alternatively, you can send us a message and we will get in touch at a time that suits you.

Legally Speaking

Load More
View All Posts