This is an area of law & practice that is shrouded in mystery. In the context of a company in financial distress, most people tend to think that if a director disagrees with a course of action being taken by other directors, he/she should resign. We’ve never agreed with this, but in practice most directors […]
Monthly Archives: March 2019
Can a creditor sue a company that has filed a Notice of Intention to Appoint an Administrator?
Administration is a formal procedure in which an insolvency practitioner is appointed to manage the company’s affairs in the interest of creditors with the goal of restructuring the business or realising its assets. Administration is commonly used by companies to buy a breathing space to try to rescue their businesses. There are several routes into […]
Court of Appeal limits claims against directors
In a much anticipated and long-awaited decision, the Court of Appeal in BTI 2014 LLC v Sequana SA has cast its magnifying glass over breach of duty claims under section 172 Companies Act 2006 and limited the circumstances in which claims can be brought against directors. The case concerned the declaration of a dividend of […]
Liability of auditors for negligent audit – how times change!
Back in 2009, on the last day that the House of Lords delivered judgments, it was decided on a 3:2 majority that Moore Stephens were not liable for the negligent audit of Stone & Rolls Ltd. Moore Stephens failed to spot that the sole director had defrauded the company. The Court said that the Company […]