MISFEASANCE

 

MISFEASANCE-BIG WORD-BIG CONSEQUENCES

Section 212 of the Insolvency act 1986

"There are many connotations and facets of Misfeasance that quite frankly baffle most Company Directors"

If you have Liquidated a company over the last twelve months or so and are suddenly receiving correspondence from the Liquidator alleging the act of Misfeasance.

"What do you do"
The first thing you do is panic and then contact a solicitor, 'DON'T' you will need proper corporate advice and a sympathetic ear.

We at Tenable offer such advise and have the right advisor's to enable a speedy conclusion to what is at first glance a very daunting, costly and time consuming prospect.

The Insolvency Practitioner has a duty to report what they feel constitutes Misfeasance and in most cases they themselves want a speedy conclusion to the problem for all concerned.

They have to instruct Solicitors to legalise the process, but unfortunately this usually gets the Directors backs up and they go to ground or seek bad advice, which can inevitably be very costly.

As a director of a company you may not have sought advice with regards to your personal liabilities for the company. Worryingly, your personal assets could be at risk. It is imperative that you seek advice NOW.

As a Director of your company you may be personally liable to recoveries by the Liquidator of creditors of a company for the amount of loss caused by Misfeasance.

Under the Companies Act and common law, directors of companies have duties not to:
· Misapply company money
· Retain or misapply company property
· Breach any duty of trust when dealing with company money
Section 212 of the Insolvency Act 1986 refers to the legal concept of misfeasance and makes the director personally accountable to pay back to the company the amount of loss caused by any misfeasance to the extent that the Court so orders.

You may suddenly receive correspondence from the Liquidator alleging the act of Misfeasance. What do you do? The first thing you do is panic and then contact a solicitor, 'DON’T' you will need proper corporate advice and a sympathetic ear.

The Insolvency Practitioner has a duty to report what they feel constitutes Misfeasance and in most cases they themselves want a speedy conclusion to the problem for all concerned. They have to instruct Solicitors to legalise the process, but unfortunately this usually gets the Directors backs up and they go to ground or seek bad advice, which can inevitably be very costly.

We at Tenable have a combined experience of over 60 years, we have a wealth of knowledge and expertise that can help you. We have the right advisor's to enable a speedy conclusion to what is at first glance a very daunting, costly and time consuming prospect.

We pride ourselves in offering a professional service, we understand that the majority of business owners do not work “9-5” and as such we have an OUT OF HOURS SERVICE, a consultant will be on hand until 9pm in the evenings and on a weekend - this number is 01484 866920. Alternatively if you would like an informal chat during office hours or to arrange a FREE no obligation consultation then please call do not hesitate to contact us on 01484 866920.

If you feel that you don’t need our guidance at this present time please keep our details; you never know what obstacles are around the corner!

· Misfeasance – as a Director of a company you may be liable to recoveries by the Liquidator of creditors of a company for the amount of loss caused by misfeasance. Under the Companies Acts and common law, directors of companies have duties not to:
· Misapply company money
· Retain or misapply company property
· Breach any duty of trust when dealing with company money

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