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Answered in 11 minutes by:
10/15/2009
Michael Holly, Solicitor
Category: UK Law
Satisfied Customers: 7,608
Experience: I have 20 years of experience as a solicitor in litigation and other areas
VerifiedYou should consider applying to the Redundancy Payments Office who will pay certain sums where an unfair dismissal award has been made and then the employer becomes insolvent.
They will pay the basic award in full and a certain number of weeks owed for wages and holiday pay.
Whilst you may not recover every penny that way you should get some of the amount due leaving you chasing less.
Given how hard it may be to show directors as being personally liable I would go that route and the see what amount you are left chasing before deciding whether it is economically worthwhile pursuing.
The Redundancy Payments Office comes up on my search engine and hopefully yours!
I hope this helps kindly click accept so that I get credit for my answer.
Best wishes
Yours sincerely
To be honest I doubt it.
Firstly the liquidator may have pointed out that they were unable to touch certain monies because the leases were in the names of the directors but this does not mean that the directors have done anything wrong by doing that. It is very common for directors to buy items and lease them to the company such as cars offices etc. It means that should the company fail they are creditors of the company.Unless company funds are used to buy the items then there is nothing wrong with it.
The other point is that if it were a breach of director's duties why didn't the liquidators pursue it?
Yours sincerely
Michael Holly, Solicitor
Category: UK Law
Satisfied Customers: 7,608
Experience: I have 20 years of experience as a solicitor in litigation and other areas
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