How to Bring a Misfeasance Claim

Bring a claim against a director

Call 0207 504 1300 now to proceed with a Misfeasance Action against a director

What is Misfeasance?

Misfeasance takes place when a director or ex-director has misapplied, misappropriated, retained or become accountable for any of the company's money or property. Misfeasance is far worse than maladministration because it means a director has been dishonest and engaged in bad behaviour, wrongdoing, or some misconduct that's brought financial loss to creditors.

Who Can Bring a Misfeasance Claim?

Creditors and shareholders can take action for Misfeasance against the director of a liquidated company. However, no claim can be made if the business has entered either Company Administration or a Company Voluntary Arrangement (CVL). In the vast majority of cases, the insolvency practitioner (liquidator) brings a Misfeasance action against the director.

This usually happens because the liquidator has seen an opportunity to enrich themselves and the lawyers they work with, and hopefully secure a recovery for creditors. As a result, the court may limit the amount insolvency practitioners and lawyers can receive from a particular case to ensure creditors benefit from the proceeds.

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Misfeasance Claims are complex and you will need expert guidance and support to pursue your claim. Call 020 7504 1300 now for free and confidential advice…

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