Director Business Guidance Specialists

Misfeasance Claims Guidance
for UK Directors

Expert business guidance and support for directors facing misfeasance claims, wrongful trading allegations, and personal liability risks. Get specialist business advice and strategic guidance to navigate complex challenges.

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Critical Director Information

What Are Misfeasance Claims in the UK?

Misfeasance claims are serious actions brought against company directors for alleged breaches of duty, wrongful trading, or misuse of company assets. Understanding these claims is crucial for directors seeking expert business guidance and support to navigate these challenges.

Legal Definition

Misfeasance refers to the wrongful performance of a lawful act by a company director. It occurs when directors breach their fiduciary duties, act negligently, or engage in conduct that harms the company or its creditors. We provide guidance to help directors understand these concepts.

Key Legal Framework:

  • • Companies Act 2006
  • • Insolvency Act 1986
  • • Company Directors Disqualification Act 1986
  • • Common Law Fiduciary Duties

Who Can Bring Claims?

Misfeasance claims can be brought by various parties with legal standing, typically during or after insolvency proceedings.

Liquidators
Administrators
Creditors
Company (in certain circumstances)

Common Types of Misfeasance Claims

Wrongful Trading

Continuing to trade when the company had no reasonable prospect of avoiding insolvent liquidation.

Fraudulent Trading

Carrying on business with intent to defraud creditors or for any fraudulent purpose.

Transactions at Undervalue

Disposing of company assets for significantly less than their true value.

Unfair Preferences

Preferring certain creditors over others in the period before insolvency.

Breach of Fiduciary Duty

Failing to act in the best interests of the company and its stakeholders.

Misappropriation of Assets

Using company assets for personal benefit or unauthorized purposes.

Facing a Misfeasance Claim?

Time is critical. Misfeasance claims can result in personal liability, asset seizure, and director disqualification. We provide guidance to help you understand your options.

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