INSOLVENCY & LAW
How to defend a Misfeasance claim
Business rescue . Debt recovery . Insolvency support
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...
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Call 0207 504 1300 for help with a Misfeasance assessment
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.
Who can bring a Misfeasance claim?
In most cases, a licensed insolvency practitioner (IP) / liquidator will claim for Misfeasance against the director of a company in liquidation.
The government's Insolvency Service, creditors, and shareholders may also take action. But no claim can be made if the business has entered into a company voluntary arrangement (CVA) procedure.
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.
Discuss your situation in confidence
Financial distress is rarely straightforward, and delay often increases risk.
If you are a creditor, investor, or director affected by insolvency, speaking to an experienced insolvency expert can help clarify where you stand and what may follow.
Contact our team at Insolvency & Law to book a confidential consultation now