How to defend a Misfeasance claim

We help company directors stay directors

Are you a company director who has been accused of Misfeasance, misconduct, or some other serious wrongdoing?

If so, contact Insolvency & Law today and speak with a professional independent advisor for a free and confidential consultation. They will discuss your options, and provide solutions on how to:

Defend a Misfeasance claim...

Avoid adverse proceedings...

Prepare for Director Disqualification...

Liquidate your company...

Rescue your business...

Call for Misfeasance assessment

Protect yourself from allegations of misconduct...

Listen to the podcast below for information on how to defend a Misfeasance claim...

Request call back

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What is Misfeasance?

According to section 212 of the Insolvency Act 1986, Misfeasance takes place when a director or ex-director has misapplied, misappropriated, retained or become accountable for a company's money or property.

Misfeasance is worse than maladministration as it means a director has brought creditors financial loss through bad behaviour, wrongdoing, misconduct, and or dishonesty.

Defending a Misfeasance claim can be stressful, and cost between £30,000 and £60,000 or considerably more.

Although the director and company are recognised as separate legal entities, in many instances the director is also a company employee.

Subsequently, directors are supposed to put the company's interests above their own. Moreover, they must always act with honesty and integrity, and promote the interests of the company.

Who can bring a Misfeasance claim?

Preferential payments

An insolvency practitioner will try to:

Chronicle the company's bank statements

Identify a pattern of preferential payments to suppliers and lenders the director is friendly with

Although the company would've collected National Insurance, VAT, and PAYE tax revenue in the months prior to insolvency - HM Revenue & Customs probably never received any of that money. Consequently, any other creditor the company paid received preferential treatment, which is a Misfeasance.

Tips and advice

You may want to submit to a written threat of Misfeasance proceedings in the face of compelling evidence, and a well-funded claimant. In such instances, a realistic out-of-court settlement may be mediated.

What is Misfeasance?

Misfeasance is worse than maladministration as it means a director has brought creditors financial loss through bad behaviour, wrongdoing, misconduct, and or dishonesty.

Defending a Misfeasance claim can be stressful, and cost between £30,000 and £60,000 or considerably more.

Although the director and company are recognised as separate legal entities, in many instances the director is also a company employee.

Subsequently, directors are supposed to put the company's interests above their own. Moreover, they must always act with honesty and integrity, and promote the interests of the company.

Who can bring a Misfeasance claim?

Preferential payments

An insolvency practitioner will try to:

Chronicle the company's bank statements

Identify a pattern of preferential payments to suppliers and lenders the director is friendly with

Tips and advice

CALL 020 7504 1300

Call now 020 7504 1300 Monday to Friday 9am - 5pm for confidential free advice

How to defend a Misfeasance claim

We help company directors stay directors

Call for Misfeasance assessment

Protect yourself from allegations of misconduct...

Listen to the podcast below for information on how to defend a Misfeasance claim...

Request call back

What and who to look out for...

Tips and advice

What and who to look out for...

Tips and advice

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