What does this mean? Directors will rarely have heard of these unless they have had the misfortune to be on the end of one. They arise where director has done something, perhaps unwittingly, before the company became insolvent. This results in a claim being made against them.
The common ones are:
Preference – allowing one creditor to be preferred over other creditors e.g. a family member
Transaction at Undervalue – entering into a transaction selling company property for less than its true worth
Misfeasance – breaching directors duties to the Company, usually by misappropriating Company property
There can be defences to any such claims, and we are experienced in dealing with them. However should you receive any claim of this type; it is essential that advice is obtained at an early stage.
Call us to discuss your situation and we will do our very best on your behalf.