Whilst nearly all companies have the benefit of limited liability, the protection for directors and shareholders is often compromised by the giving of personal guarantees and/or granting of security on personal assets (often the director’s home) to banks, finance companies, and sometimes key suppliers.

Leathes Prior can assist the director by advising on the potential liability of the director and, as appropriate, with disputing or negotiating with the creditor concerned, which may lead to a substantial reduction in the director’s liability. Alternatively we can advise the director on the personal insolvency procedures available to him. For more details click here

If a company is placed into liquidation, the Liquidator is statutorily obliged to investigate the conduct of the Director whilst he was managing the company’s business and if it is found that the director’s conduct falls below what is reasonably expected of him, the Director may find himself subject to:

Directors should therefore seek advice as soon as possible to minimise their potential liability.

Contact
In the event that you have any enquiries, then please contact either Frank Brumby or Sue Sutton or Adam McCaw or alternatively please call us on 01603 610911.