If a company enters an insolvency process such as liquidation or administration it is an obligation and duty of the liquidator or administrator to explore the company’s dealings prior to the insolvency.
The purpose of this is to investigate the reasons for the company’s insolvency and also to establish if the company’s assets have been treated in such a way that the statutory regime for distribution of the company’s assets to its creditors on equal basis has been disrupted.
The liquidator or administrator will also assess whether the conduct of the company’s directors has caused the company and its creditors loss which, if the directors had been acting properly and in accordance with their statutory duties under the Companies Act 2006 and/or Insolvency Act 1986, could have been avoided.
We act for insolvency practitioners, creditors and directors in relation to all manner of insolvency claims including claims for misfeasance of directors, under value and preference claims, transactions defrauding creditors and wrongful and/or fraudulent trading.
If you are a director of a company being pursued by a liquidator or administrator it is imperative that you seek advice as soon as possible in order to defend yourself from proceedings and/or to mitigate your personal liability by way of a negotiated settlement where possible.
For further information please contact either Kathryn Maclennan firstname.lastname@example.org, Richard da Roza email@example.com or Paul Formby firstname.lastname@example.org Tel Blackburn 01254 268790, Bolton 01204 527777