Director’s duties are serious and must be complied with. It is not always straightforward to do so though.
Being a director of a company is a position which holds responsibility. Many people accept the position of director without fully understanding the consequences of having done so.
If a director acts in breach of their duties to a company, they can face severe financial penalties. If a company goes into liquidation or some other form of formal insolvency procedure, it is often the case, that insolvency practitioners will pursue directors for breaches of duty to recover money for creditors of the insolvent estate.
Claims can include for dividends paid, transactions that are not deemed to be for the company’s benefit, conflicts of interest etc.
We at Mann Roberts have years of experience defending directors from claims made against them by former companies, insolvency practitioners and the secretary of state for business innovation and skills.