Looking for solicitor

[Harcourt]

Hi,

We're looking to instruct a solicitor with a view to going after a director of a limited company personally.

"If a director fails to perform his duties properly, a creditor, a shareholder, an employee, or another director who has suffered financial loss might take legal action against the director or the limited company"

If anyone can assist us with doing this on the above grounds please PM me.

Thanks

 

[Free Lance]

In almost all cases your action will be against the company not the director.

If a director of Company A fails to perform his duties properly then as a general rule:

1. If you are a creditor of Company A, your claim is against Company A, not the director personally.

2. If you are a shareholder, you might have rights to bring a claim against the director on behalf of Company A under s.260 of the Companies Act 2006 (a derivative claim). Any payment ordered against the director goes to the company and not the shareholder.

There may be circumstances where, if the director is a fellow shareholder and you have a shareholders agreement to which you are both a party then you might (emphasise 'might') have the right to bring an action against him directly.

3. If you are an employee of Company A then in most cases your claim is against Company A, not the director. There are exceptions like personal injury and sexual harrassment.

4. If you are a fellow director of Company A then you may be able to cause Company A to sue the director for breach of his duties. If the director can block that (it's usually a board decision and one man one vote at that board) then you might be able to go down the derivative claim route (see para 2).

In summary, you will probably have to sue Company A or, if you sue the director personally, it will be Company A doing that and no one else.

Liquidators and administrators can also sue directors - but again the benefit of any amount recovered is for the insolvent Company A.

PM me if you would like a recommendation of a solicitor who can look into this for you.

 

[Harcourt]

Hi Freelance,

We did sue the company, obtained a judgement and a warrant of execution. The bailiff has been but says there are no goods available to seize as everything there of any value is on an HP or lease agreement so nothing actually belongs to them.

He also said its not the first time he's been there and the director there is basically just carrying on trading despite the CCJ's and laughing at the creditors.

It was actually the bailiff that said to seek legal advice as we *may* have grounds against the directors.

Thanks