Breach of Directors’ Duty Claims

Company directors are responsible for representing and promoting the interests of the company. This includes being responsible for the company’s filing and reporting requirements and complying with duties set out in the Companies Act 2006.

If a company director breaches their duties, they could face civil action and, in some cases, criminal proceedings. It is imperative that you seek advice and representation from the expert solicitors at JMW at the earliest possible stage to protect yourself and the company throughout any legal proceedings, and ideally avoid such proceedings altogether.

JMW’s team of solicitors are well versed in both bringing and defending cases brought against directors for breach of duty. To speak to a solicitor if you have been accused of breaching the duties of a company director, or you believe someone else to be in breach, contact us on 0345 872 6666, or fill in our online enquiry form to request a call back.

The Duties of a Company Director

Directors owe various duties to the company of which they are a director, which are set out in the Companies Act 2006 and are as follows:

1. To act within powers
2. To promote the success of the company
3. To exercise independent judgment
4. To exercise reasonable care, skill and diligence
5. To avoid conflicts of interest
6. Not to accept benefits from third parties
7. To declare an interest in a proposed, or existing, transaction or arrangement with the company

Under the Companies Act 2006, directors are also legally responsible for the company’s

filing, reporting and accounting requirements, failure of which is often a criminal offence.

If a shareholder, board of directors or (on liquidation) an officeholder discovers a breach of duty by a director, including former directors, they will, in the vast majority of cases, be able to bring a claim against the director in breach, whether directly or on behalf of the company.

Furthermore, if former directors of insolvent companies are found to have breached their duties, an officeholder may bring a claim against the directors for misfeasance.

How JMW Can Help

Our expert solicitors have experience handling all aspects of director-related company law and litigation and can help avoid risks and provide clarity for directors on their duties. The team’s skills include advising in respect of directors’ duties, making and defending claims for breach of duty, tracing assets and resolving disputes.

This area of law can be complex but we have handled many complicated and highly contentious situations. We can draw on the expertise of colleagues from relevant departments at JMW, including corporate, corporate restructuring and employment. We also work with forensic accountants and other services both large and boutique so we can tailor the level of service and cost to the client’s needs.