When a business enters insolvency proceedings, there are often disputes over the ownership of assets. Lupton Fawcett’s contentious insolvency team can help to alleviate disputes quickly and efficiently.
We have an enviable reputation and expertise in handling all aspects of insolvency investigation and litigation, acting primarily for insolvency practitioners, but also lending institutions, directors and corporations.
To speak to a solicitor about our contentious insolvency services, get in touch today by calling 0333 323 5292. Alternatively, fill in our online enquiry form and we will get back to you as soon as possible.
We have experience in dealing with:
- Antecedent transactions
- Recovery of misapplied assets
- Wrongful trading
- Fraudulent trading
- “Phoenix” companies
- Defending against director disqualification proceedings
Seeking specialist legal advice early on in the insolvency process is crucial to any business concerned about potential liabilities during financial difficulties.
We advise businesses on how to avoid action being brought against them during contentious insolvency procedures by ensuring they stay above the law during insolvent liquidation. For example, making sure directors hold regular board meetings and clearly record all financial decisions that are made.
We have worked on a number of notable cases, including:
- Acting for administrators in a successful multi-million pound insurance claim
- Acting for administrators in successfully challenging the payment of £150,000 as transaction at an undervalue
- Acting for liquidators of a large plumbing contractor on a fraud investigation worth over £1 million
- Acting for liquidators of an After the Event (ATE) insurer in a dispute over £6 million of insurance proceeds
- Acting for administrators of an online resource provider where a dispute had arisen amongst the directors that required a court application for the sale of fixed charge assets
What is fraudulent trading?
Following the winding up of a company, if a liquidator comes to the decision that the business of the company has been carried on with the intent to defraud creditors, then they are able to apply to the courts for a declaration that anyone who was part of the fraudulent business must make a contribution to the company’s assets. This is otherwise known as fraudulent trading.
Section 213 of the Insolvency Act 1986 only applies to those who were knowingly party to the fraudulent trading. Where there is more than one party liable, the court will apportion liability between the respondents by looking at how much control each party had over the company’s affairs and what benefit each party gained.
A director who is held liable may also have a disqualification order made against them by the court.
What is wrongful trading?
Wrongful trading is a potential problem for directors or shadow directors of a company in liquidation. A liquidator can make an application to the court for an order that a director who was or is in charge of a company that is in insolvent liquidation knew or ought to have known that there was no reasonable prospect that the company could avoid liquidation and makes a contribution to the assets of the company.
The court will not make an order if the director or shadow director can show that they took every step available to minimise the potential loss to the company’s creditors.
What is insolvent liquidation?
A company goes into insolvent liquidation when its assets are insufficient to pay its debts and other liabilities.
Talk to Us
Find out more about our contentious insolvency services today by calling one of our Yorkshire offices. We have offices in Sheffield, York and Leeds. Contact our team by using the details below.
Get in Touch
With Lupton Fawcett on your side, you're taking control. Contact us today.