LEXLAW Solicitors & Barristers
When a company enters liquidation, the liquidator investigates the conduct of its directors and can pursue personal claims for misfeasance, wrongful or fraudulent trading, preferences, transactions at an undervalue and transactions defrauding creditors. This succinct guide explains each claim and, crucially, how a director can defend it.
Directors who continue trading after they knew, or ought to have concluded, that there was no reasonable prospect of avoiding insolvent liquidation or administration may face personal liability under section 214 of the Insolvency Act 1986. During the period in which a company is insolvent or nearing insolvency, directors’ decisions may also come under closer scrutiny, particularly where losses to creditors increase.
Growing scrutiny of regulatory oversight has reignited claims that small businesses were exposed to hidden liabilities through complex lending structures, raising significant legal questions around misrepresentation, regulatory accountability, and SME redress.
You have just 18 days to challenge a statutory demand. Act fast, if you have a genuine dispute or legal defence, you may be able to stop bankruptcy proceedings. This succinct guide provides legal guidance from City of London’s specialist insolvency litigation team.
Unpaid invoices and bad debts cost UK businesses billions each year. This comprehensive 2026 guide explains every stage of commercial debt recovery in England and Wales, from pre-action letters and court proceedings to statutory demands, winding-up petitions, and judgment enforcement, with relevant case law and practical strategic advice.
When a creditor serves a winding‑up petition, the company faces immediate risk of frozen bank accounts, compulsory liquidation and director investigation. This 2026 guide explains the UK winding‑up petition procedure step‑by‑step, from petition issue and London Gazette advertisement through to court hearings, potential rescue strategies and the consequences of a winding‑up order for directors and stakeholders.
Our client, Dr Elizabeth Donald represented by Jaron Dosanjh, told The Times that MFS’s collapse had been a “nightmare” in regards to her personal portfolio. Barclays, Santander and Wells Fargo are some of the institutions thought to be caught up in the Mayfair lender’s collapse — but what about individuals? Article by James Hurley, Assistant Business Editor, The Times
When a company defaults, directors who have signed personal guarantees may face direct personal enforcement. This guide explains how personal guarantees operate under UK law, when liability arises, how creditors pursue guarantors, and what legal options may be available to protect personal assets.
Sections 235 and 236 of the Insolvency Act 1986 impose powerful duties on company directors, officers, employees, and even third parties to co-operate with insolvency office-holders such as liquidators and administrators. Failure to assist properly during liquidation, administration, or bankruptcy can result in personal sanctions, court orders, fines, and even director disqualification.
A winding-up order places a company into compulsory liquidation and has immediate legal and financial consequences for directors, creditors, and employees. This guide explains what happens after a winding-up petition order is made, the role of the liquidator, and the key risks and options that follow.