Commercial advice > Directors Duties > Claims Against Directors
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Claims against Directors

The main legal claims which may be made against directors can include claims for damages,  claims arising on insolvency of the company and criminal claims for fraud, which can result in disqualification of a Director, personal liability for losses to creditors and possibly even prison time.

Many shareholders are surprised to discover that in the absence of contractual claims against directors, usually via a shareholder agreement, most claims shareholders might directly bring against directors need to be made by the company, not the shareholders.

Claims can include :-

  • Breach of fiduciary duty, usually statutory duties under the Companies Act
  • Insolvency related claims for wrongful or fraudulent trading
  • Employment law claims which teh company may make where there is a Director Service contract which has been breached by the director such as breach of restrictive covenants.
  • Fraud claims against directors
  • Claims based on director negligence such as negligent misrepresentations or misstatements
  • Shareholder claims against directors via the process known as derivative claims
  • Abuse of powers - such as excessive remuneration or taking director loans from the company and failing to repay

We advise both directors defending claims made against them and also relevant parties who may have claims against directors. Please do get in contact to discuss your situation, our experience, and how we would approach resolving your issue.

 



Legal advice on claims against company directors.

 

 


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