Misfeasance & Directors Duties

If you breach your duties a claim being made against you personally as a director for the loss suffered by the company as a result of the breach.

Such claims are commonly brought by a company liquidator under section 212 of the Insolvency Act 1986 and are known as ‘misfeasance’ claims. As a director it is imperative that you understand when and how your duties change if formal insolvency is likely as there may be a duty to consider the interests of creditors over the company’s shareholders.

We can advise you in this respect and help avoid any claims being made against you for misfeasance.  If those claims are pursued we are experienced in providing directors with a robust defence wherever possible and advising on mitigating any possible personal liability and the potential for settlement.

Misfeasance actions are often linked to disqualification proceedings so it helps to get early advice on both these issues.

Any claims against directors personally will be of great concern. Understanding how to avoid such claims and, if the worst happens, how best to deal with them, is something we can help with.