Breach of Directors' Duties Solicitors

When someone is appointed as a director of a company, they have a significant role to play, with various responsibilities to protect the business and its best interests.

A directors’ breach of duties can have a major impact on the business, so it is highly encouraged to seek legal advice from a professional to ensure matters are swiftly resolved.

Our team of experts specialise in various types of breach of directors’ duties scenarios, from those more straightforward to resolve to others more complex and require a higher level of legal expertise.

At Glanvilles, our team have a high level of expertise in assisting various clients from all types of industries with breach of director duties matters. Whether you are a shareholder, a director making a claim or defending a claim of breach of directors’ duties, our solicitors are on hand to provide the specialist advice and guidance you need to get the desired outcome.

When you work with the Glanvilles team, you can be confident in receiving pragmatic advice and practical guidance from a specialist team. We will take the time to carefully understand the circumstances of your case and the impact it has had on the business, and this allows us to provide a completely tailored service.

Get in touch with our breach of directors’ duties solicitors in Chichester, Fareham and Havant

Contact our breach of directors duties solicitors in Chichester, Fareham or Havant or fill in our simple online enquiry form for a quick response.

The Glanvilles guide to UK breach of directors’ duties

What are the duties of a company director?

Under chapter 2, part 10 of the Companies Act 2006, a company director has seven duties. These duties include:

• To act within the company’s constitution – directors must not act outside of the powers given to them
• Promote the success of the company – when making decisions, directors must decide if actions will assist with the company’s success
• Exercise independent judgement. They cannot favour a shareholder or part of the business
• Exercise reasonable care, skill and diligence
• Avoid direct and indirect conflicts of interest
• Not to accept third-party benefits
• Declare interests in proposed transactions or company arrangements

If the above duties are breached, the director can be held liable. Either civil actions or criminal sanctions could occur depending on the situation’s severity.

What are the consequences of breaching your duties as a company director?

There can be considerable consequences for breaching your duties as a company director, which will apply most usually depends on the severity of the breach. These consequences could include:

• Removal from office temporarily or permanently – where more than half the shareholders vote for this
• Be held personally liable – If a business becomes insolvent and enters liquidation, a director may be held personally liable for this if misconduct has taken place.
• Criminal offence – Certain cases of breach of directors’ duties can be considered a criminal offence depending on the severity of the breach. A director could receive a fine or even, in some cases, be imprisoned for their actions.
• Disqualification – Under Company Disqualification Directors Act 1986, a director may be disqualified from being the director of a company or being involved in the promotion, formation or management of a company.

What are the remedies for breach of directors’ duties?

Some examples of the remedies for breach of directors’ duties include:

• Compensation for any profit damages the business incurred
• Restitution of profits - any profits the director has personally made will need to be returned to the company
• An injunction against the director to prevent them from carrying out a breach or from continuing one
• Returning company property
• Revoking of a contract the director entered into

What action can shareholders take against directors?

While a breach of directors’ duties may impact shareholders, the director only owes their duties to the business itself. This means one or more shareholders can come together to make a claim against a director under the company’s name but can only claim for financial losses suffered by the company, not their own personal financial losses. This is known as a derivative claim.

If the breach of directors’ duties matter is more straightforward to resolve and the director is willing to co-operate, shareholders can take a less contentious approach to find a resolution. This could be using alternative dispute resolution (ADR) methods, such as private negotiation or mediation, where a remedy could be proposed and agreed on by all parties involved.

If the misconduct the director has carried out is more serious and could be considered a criminal offence, the shareholders can seek further assistance from the court.

What court action is taken against a director for breach of duty?

When a breach of director duties case goes to court, criminal action could be taken against them could, which could include disqualification, a fine or imprisonment.

Can a company take action against a director?

A company itself can take action against a director if the business has suffered damages, such as a loss of profit.

How we deal with breach of director duties issues

Our solicitors recognise the impact that a breach of director duties can have on a business’s future and strives to provide an outstanding service, with the business’s best interests at the centre of what we do.

When you choose to instruct the Glanvilles’ breach of directors’ duties team, you will receive an efficient service, where our solicitors will take the time to carefully listen to the circumstances of the case and provide advice that is specifically tailored.

Why choose Glanvilles’ breach of director duties solicitors?

With the assistance of the Glanvilles’ breach of director duties solicitors, you can be confident in receiving proficient advice and practical guidance from specialist solicitors. The team of experts have years of collective expertise in assisting all types of clients from various sectors.

The Glanvilles’ client service promise

When you use our breach of directors’ duties service, we promise:

• Our staff will be friendly, respectful and attentive.
• Your concerns will be listened to, your questions answered, and your options explained in plain English.
• The cost of dealing with your requirements will be made clear to you from the outset.
• We will answer your phone calls and emails promptly.
• We will keep you regularly updated at all times.

Get in touch with our expert breach of directors’ duties solicitors in Chichester, Fareham and Havant

Contact our highly experienced breach of directors duties solicitors in Chichester, Fareham or Havant or fill in our simple online enquiry form for a quick response.