10@12 Webinar : Bringing Claims against Wrongdoing Directors
7th October 2022
This talk addresses some of the key issues that arise when considering bringing claims against wrongdoing directors.
Who can bring a claim; what needs to be done to ensure that the claim is properly authorised; when is it necessary to bring a derivative claim; causes of action under the Companies Act 2006 and the Insolvency Act 1986; pitfalls to avoid.
- To start with, don’t forget s 1157.
- Who can sue?
- Ensuring proceedings brought by the company are properly authorised.
- Managing the claim; delegation to a sub-committee of the board.
- Wrongdoer control; derivative claims.
- The general duty to promote the success of the company under s 172; the meaning of the good faith test.
- The duty to act for a proper purpose; who decides what purposes are “proper”?
- Negligence – the composite test for breach of duty under s 174.
- The insolvency context; additional claims available to the liquidator.
- Is it worth it? Indemnities and D&O cover.