Misfeasance is a catch all claim by a liquidator against directors alleging wrongdoing which may have caused loss to the company. It usually involves allegations of breach of fiduciary duty or breach of duties set out in the Companies Act 2006 to include, for example, allegations of paying unlawful dividends to shareholders, causing preferential payments to be made to connected parties, misapplying company assets or monies or trading at the expense of HMRC. Allegations of misfeasance can also include suggestions that a director failed to act in the best interests of the company, for example, conflict of interest situations, having competing interests or diverting contracts or other business away from the company. Misfeasance claims can also lead to director’s disqualification.
Here at Edwin Coe, we have many years’ experience of pursuing and defending claims of misfeasance by directors and have particular experience in complex, often cross border matters.