p. 33115. Directors’ liabilities and vulnerable transactions on insolvency
- Brenda HanniganBrenda HanniganProfessor of Corporate Law University of Southampton
Abstract
This chapter considers directors’ liabilities on a company going into insolvent liquidation or administration. Redress for breach of duty by directors is mainly a matter for liquidators and administrators who can pursue a variety of options. The common measures are considered in this chapter: misfeasance claims (IA 1986, s 212); claims for fraudulent trading (ss 213, 246ZA); and for wrongful trading (ss 214, 246ZB). It is possible also to challenge certain past transactions, for example, as transactions at an undervalue (s 238) or preferences (s 239). The chapter also considers the grounds for disqualifying a director which commonly is a consequence of insolvency. The case law concerning unfitness to be a director is considered and the nature of disqualification orders and undertakings is addressed as well as the scope for seeking a compensation order.
