header-logo header-logo

Expert witness: Directors’ breaches & consequences

13 August 2021 / Rakesh Kapila
Issue: 7945 / Categories: Features , Profession , Expert Witness
printer mail-detail
54942
Rakesh Kapila considers how forensic accountants can assist lawyers in actions arising from alleged breaches of directors’ responsibilities
  • Examples of breaches and their consequences.
  • Forensic accountants’ role.

Shareholder dissatisfaction at company performance in the UK often focuses on directors’ responsibilities. The Companies Act 2006 codified certain general duties such as the duty to promote the interests of the company and directors’ obligations have also been refined over the years by case law. Certain legislative provisions affecting directors extend to ‘shadow directors’, ie persons on whose instructions the directors of a company are accustomed to act.

This article provides examples of directors’ breaches and their consequences and considers how forensic accountants can assist lawyers in actions arising from alleged breaches of directors’ responsibilities.

Forensic accountants’ role

Forensic accountants may become involved in showing that specific breaches of duty occurred, in putting forward defences to alleged breaches and in the computation of the financial consequences of a breach.

In relation to the financial consequences of a breach of duty,

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
The Court of Protection has ruled in Macpherson v Sunderland City Council that capacity must be presumed unless clearly rebutted. In this week's NLJ, Sam Karim KC and Sophie Hurst of Kings Chambers dissect the judgment and set out practical guidance for advisers faced with issues relating to retrospective capacity and/or assessments without an examination
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
back-to-top-scroll