Category: Transactions at Undervalue | LEXLAW Solicitors & Barristers

Directors Exposed to Personal Liability in the Twilight Period (Insolvency Act 1986)

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.

Guide: Impact of Compulsory Winding-up Order Liquidation on Directors

This detailed guide explains the impact of compulsory liquidation. Early engagement with specialist insolvency and tax counsel is the most critical factor in minimising director exposure and defending or managing the process effectively. Our specialist solicitors and barristers are available to assist on a discounted fixed fee arrangement.

Post date 5 December 2025
Post author By LEXLAW Solicitors & Barristers
Post categories In Director's Duties, Directors Disqualification, Directors Loan Account, HMRC, Insolvency, Insolvency Litigation, Litigation, Transactions at Undervalue, Winding-up Petitions
Tags Companies, Company Directors Disqualification Act 1986, Compulsory Liquidation, CVA, Directors Disqualification, Directors Duties, Frozen Bank Account, HMRC, Insolvency, Liquidation, Overdrawn DLA, Penalty Liability Notice, PLN, Statutory Demand, Winding Up Petition

Success: Defence of Manolete Director Repayment Claim

In Manolete Partners Plc v Trevor Howarth [2024] EWHC 2294 (Ch), the High Court dismissed a £101,000 claim against the former CEO of One Legal Services. Manolete alleged that repayments to Mr Howarth’s director loan account during the firm’s CVA were unlawful preferences under the Insolvency Act 1986. Judge Barber disagreed, holding the payments were made in good faith.

Post date 13 September 2025
Post author By LEXLAW Solicitors & Barristers
Post categories In Advice for Employers, Bridging, Bridging Finance, Case Law, Civil Litigation, Commericial Contracts, Contract, Contractual Dispute, CVA, Director's Duties, Financial Services Litigation, Litigation, Manolete, Transactions at Undervalue
Tags Directors’ Duties, Insolvency Act 1986, Insolvency Litigation, liquidation disputes, Manolete case study, Manolete claims, Manolete Partners, preference claim, s.239 Insolvency Act

Director Liability, Insolvency Act 1986, Manolete Partners, Connected Party Transactions, Breach of Fiduciary Duties, Insolvency Litigation Funding, Corporate Governance, Preferences, Knowing Receipt, ICC Judge Mullen

Manolete Case Study: Director Ordered to Repay £0.9m for Insolvency Duty Breach (Transactions at Undervalue)

The High Court ordered Norman Freed to repay £918,590 after causing Just Recruit Group Ltd to make substantial payments to connected companies while insolvent, breaching his fiduciary duties under the Companies Act 2006.

Post date 30 August 2024
Post author By LEXLAW Solicitors & Barristers
Post categories In Case Law, Case Study, Director's Duties, Directors Disqualification, Insolvency, Insolvency Litigation, Litigation Funding, Manolete, Transactions at Undervalue
Tags Manolete Partners claims

Directors Exposed to Personal Liability in the Twilight Period (Insolvency Act 1986)

Guide: Impact of Compulsory Winding-up Order Liquidation on Directors

Success: Defence of Manolete Director Repayment Claim

Manolete Case Study: Director Ordered to Repay £0.9m for Insolvency Duty Breach (Transactions at Undervalue)

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