Liquidation

Preventing a bad situation becoming worse.

Liquidation Lawyers, Glasgow

Businesses can face financial difficulties for many reasons. Insolvency law is complex and the case law is continually evolving. Business owners facing the possibility of insolvency – whether of their own business or a customer’s or supplier’s company – require legal guidance to negotiate the process carefully.

Morgan Legal can provide practical, cost-effective and commercially focused guidance for businesses across Scotland on these matters. To discuss your specific circumstances, call us today on 0141 258 4117 or fill out our online contact form and we will get back to you right away.

To discuss your circumstances and get the advice you need, get in touch today

Call 0141 258 4117

Or complete our online contact form and we will get back to you without delay

Can Directors Be Liable?

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When a company is in financial trouble, the behaviour of its directors comes under scrutiny. If the company goes into liquidation, the liquidator or administrator can hold directors personally liable if they failed to act in the interests of the company and its creditors. These claims are pursued so that directors are asked to compensate the company for the benefit of the company’s creditors.

For such claims to succeed there must be evidence of some kind of wrongdoing or misconduct by directors, such as misfeasance, breaches of statutory or fiduciary duties, or a contravention of the insolvency legislation, such as wrongful or fraudulent trading, or an undervalued transaction or unfair preference. Generally, however, if a director wishes to minimise their risk of liability, they must act in good faith and be proactive, recording and explaining any action they have taken prior to insolvency arising.

When the directors of a company believe that it may be, or risks becoming insolvent, they should immediately seek legal advice from specialist insolvency solicitors for guidance on what steps should be taken. Directors must consider what formal insolvency processes may be open to the company to protect the interests of its creditors. Failure to take appropriate action can see directors become personally liable for certain acts and omissions. 

Contact our Liquidation Legal Advice Lawyers in Glasgow, Scotland

We are a boutique law practice based in Glasgow with over 30 years of experience advising commercial clients on insolvency proceedings. All of our work is partner-led so you can rest assured that your case is in safe and capable hands.
If you think your business is, or may become insolvent, call our expert insolvency law specialists today on 0141 258 4117 or fill out our online contact form.

Get in touch

Address

Regent House, 113 West Regent StreetGlasgow, G2 2RU

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