Being a director of a company carries significant responsibilities. Many of these responsibilities are apparent but some are not and can therefore be traps for the unwary. We aim to help directors understand their legal responsibilities and potential liabilities and to provide practical advice as to how they can go about discharging those responsibilities and avoiding personal liability.
Knowing that you have knowledgeable professionals on hand to advise as to your obligations and how to discharge them allows you to get on with running your company with peace of mind.
Examples of our work in this area include:
- How to avoid conflicts of interest in relation to projects outside the company (or how to put a stop to such activities if appropriate where acting for the company)
- Pursuing directors who breach their duties on behalf of the company.
- Pursuing claims against directors on behalf of shareholders where there has been questionable conduct by the directors (known as derivative actions).
- Advising directors of insolvent companies who have taken drawings on account of dividends that have ultimately not been forthcoming due to an absence of profit from which to declare a dividend. It is common in such situations for the payments to be regarded as loans to the director and for these to be reclaimed by the liquidator or administrator of the company.
- Advising directors of companies with financial difficulties on their duties on how to avoid personal liability if a company were to go bust.
- Advising directors in deadlocked companies as to their rights to information and to be involved in the Company’s affairs. This often includes advice as to their position as shareholders and what their rights are in this regard including the possibility of seeking remedies through the Courts.