By Tony Johnson - 17 Jun 2013
The recent High Court
judgment in Hampson v Registrar of Companies has
reaffirmed that in some circumstances a creditor of a company in
liquidation may have a direct right of action against a director of
that company.
Section 301 of the Companies Act allows a creditor,
liquidator or shareholder of a company that has gone into
liquidation, to bring an action against a director for breaches of
the Companies Act. Such actions are usually brought on behalf of
the company itself. This means that if such an action is
successful, any funds recovered from the director will become an
asset of the company, and will be distributed by the liquidators
for the benefit of all creditors.
However, in some circumstances (generally where the creditor has
personally been defrauded by the director's actions) a different
approach can be available. The Court may exercise its discretion to
order that the director transfer the money or property, that had
belonged to the company, directly to the applicant creditor, rather
than to the company in liquidation. Any such money or property
would be retained by the creditor and would not form part of the
assets within the liquidation.
If as a creditor you find yourself in the position above (or if
you just have a general interest) contact us for more
information.
Contacts
Tony Johnson
Judgment
Hampson v Registrar of Companies