Directors’ Liability Solicitors

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When something goes wrong in a business, it’s often that the director’s liability is brought into the spotlight. Based in Northampton, Birmingham and London, our team can support you when you are facing a difficult situation involving your duties, responsibilities and liabilities as a company director.

Dealing with directors’ liability claims can be a very stressful experience but you can rely on our solicitors to support you and defend your rights at all times while endeavouring to ensure business continuity in the face of regulatory intervention.

Need urgent 24/7 assistance at a police station? Call our director’s liability solicitors in London, Birmingham and Nottingham on 0300 303 2071 for immediate assistance. 

The Legal Liabilities of a Director

As a company director, you can be held accountable for legal issues regarding many parts of the business and its operations, including:

• Intellectual property (IP) disputes
• Insolvency and the financial problems behind it
• Breach of fiduciary duties (director’s duties)
• Misuse of director’s loans
• Tax violation allegations 

Under certain circumstances, company directors can also be held personally liable for losses and damages to the business caused as a result of professional negligence or other illegal activity such as wrongful or fraudulent trading. 

If a claim has been made against you, whether you are being held liable as an employee or as an individual, speak to Witan Solicitors today for a free,  initial, no-obligation consultation. 

How Witan Solicitors Can Help

We understand the stress and anxiety caused by being the focus of a criminal investigation. We are fully committed to defending and upholding your fundamental human rights and experienced in challenging the decision of Courts and local authorities, Police Constabularies and other public bodies. We have extensive experience in challenging Enhanced Disclosure Certificates following a CRB request.

Our team of director’s liability specialists can help you with a wide range of legal matters, including (but not limited to):

• Corporate: Health and safety
• Fraud and HMRC Offences
• Health and safety
• Data Protection
• Bribery
• Money Laundering
• Computer Crime
• Directors Liabilities – Statutory and Common Law

Media and PR Representation

Director’s liability cases can often attract unwanted media attention which could hurt your reputation. We limit the impact of such claims by dealing with broadcast, print and TV media on your behalf. We also provide practical advice, so you can stay on the right side of the government regulator.

Business Crime

A director’s liability claim can be made against you for a number of white-collar crimes, including fraud, bribery, regulatory non-compliance, and financial digressions, such as HMRC tax violations and money laundering. Witan Solicitor’s business crime solicitors in Birmingham, Northampton and London have the expertise to support you at every stage of your case, whether you are under arrest, under investigation, facing a trial in court or appealing a decision made against you. 

Why Choose Witan Solicitors

Being involved in a criminal case as a company director can be challenging both personally and professionally. This is why it’s important to make the right choice when selecting the best legal team to represent you. With our experienced director’s liability solicitors by your side, you can benefit from: 

• 40+ years of successfully resolving director’s liability claims 
• Leading Legal 500 Law Firm
• Reliable, jargon-free legal advice
• Media and PR representation
• 24/7 police station assistance
• Initial, no-obligation consultation – FREE 
• Director’s liability solicitors in London, Northampton and Birmingham

Director’s Liability – The Law

According to the law in the UK, if you are a director of a company it is your duty to manage the company in the interest of the shareholders, without disregarding your responsibilities towards employees, customers and other stakeholders in the business.

These duties (referred to in legal terms as ‘fiduciary duties’) reflect a relationship of trust between you and the shareholders and are regulated by the Companies Act 2006.

Your seven fiduciary duties as a company director are:

• Duty to act within powers (section 171)
• Duty to promote the success of the company (section 172)
• Duty to exercise independent judgement (section 173)
• Duty to exercise reasonable care, skill and diligence (section 174)
• Duty to avoid conflicts of interest (section 175)
• Duty not to accept benefits from third parties (section 176)
• Duty to declare interest in proposed transaction or arrangement with the company (section 177)

How you exercise your director’s duties is defined by the powers given to you under the company’s rules – the articles of association. They are a set of rules put in place to regulate how decisions are made in the business. For example, how directors are appointed, if there are any restrictions on the type of business you can engage in, how much money you can borrow and how important decisions are agreed with the shareholders. 

FAQ

Can I be held personally liable as a company director?

Yes, if the business you are working for has suffered losses as a result of your actions, you can be held personally liable for: 

• Professional negligence: When losses/damages are caused as a result of your negligence
• Wrongful trading: When you continue trading knowing that your business cannot pay
• Fraudulent trading: Where you use the business activities for personal gains 
• Misfeasance: Misappropriation of company assets during/after your appointment
• Personal guarantees: Using personal assets as a guarantee for a company debt that cannot be repaid  
• Preferences: Choosing one supplier over another based on personal preference
• Transactions at undervalue (TUV): Selling company assets under the market value

Who can sue a director for breach of fiduciary duties?

Breach of fiduciary duty claims can be raised against a director by the company itself or by individual shareholders if they have personally suffered losses as a result of the director’s actions. Directors can also start legal disputes against one another. 

What does it mean to be disqualified as a director?