Claims Against Directors - An Introduction to the Key Issues

Introduction

This virtual classroom seminar will introduce the most common types of claims which may be brought against the directors of an insolvent company by the company or an insolvency officeholder.

The session will explain when the directors of an insolvent company may be personally liable for the company’s debts; whether and when transactions between the company and a director can be reversed; whether and when a director may be liable to compensate the company for loss caused by the director’s actions (or inactions); or to repay sums advanced to the director.

It will also consider the available defences to claims of this type, including suspension of the wrongful trading provisions during the COVID-19 pandemic.

The session will have a practical focus including procedural tips and identification of common pitfalls.

What You Will Learn

This live and interactive session will cover the following:

• Office holder claims v company claims; differences in procedure and costs consequences
• Wrongful trading claims
• Wrongful trading - defences
• Claims under section 212 of the Insolvency Act 1986 (misfeasance)
• Defences to misfeasance claims
• Restriction on reuse of company names, and consequences where the prohibition is contravened
• Exceptions to the prohibition on reuse of prohibited names
• Transactions at an undervalue/preferences - applicable rules where setting aside antecedent transactions with a director
• Company claim to recover director’s loan account
• Commonly encountered defences to company claim to recover director’s loan account
• Procedure for claims against directors - tips and pitfalls

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.