Who can bring a claim for misfeasance?
In most cases it will be the appointed Liquidator who will seek to bring a claim for misfeasance against a director/company officer on behalf of the company. However, there are others who can bring a claim for misfeasance, including:
- Administrators (normally pursued under paragraph 75 of Schedule B1 of IA 1986 rather than section 212 of IA 1986);
- A creditor of the company;
- A contributory to the company’s capital;
- The Official Receiver.
Can I challenge a claim for misfeasance?
You may be able to challenge a claim for misfeasance against you, however each case is dependent on its own merits. The challenges to a misfeasance claim can be very technical and therefore a specialist lawyer is required to consider the specific details of the allegations. However, we have been able to compile a list of possible challenges is set out below:
- Where it can be shown that shareholder assent renders the alleged misfeasance an act of the company itself thereby precluding action by the company against the director (the “common law” defence);