https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officersKohanaPHPJames Fulforth and Luke Gregoryhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/beis-white-paper-on-audit-reform-will-directors-take-on-more-personal-liabilityMon, 13 Dec 2021 00:00:00 +0000In Part 1 of our two-part series on the Department for Business, Energy and Industrial Strategy's (BEIS) White Paper on audit and corporate governance reform (Restoring Trust in Audit and Corporate Governance), we focussed on whether the proposals regarding corporate governance are likely to make the UK a more or less attractive destination for investors.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/beis-white-paper-on-audit-reform-will-directors-take-on-more-personal-liabilityLuke Gregory and James Fulforthhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/beis-white-paper-on-audit-reform-will-kwartengs-reforms-really-unchain-entrepreneursThu, 21 Oct 2021 00:00:00 +0100In 2012, as a recently elected MP, Kwasi Kwarteng co-authored “Britannia Unchained: Global Lessons for Growth and Properity”, a political pamphlet which championed risk-taking and innovation in the UK economy, and which ever since has led some to label him a fervent Brexiteer. Appointed as the Business Secretary in January 2021, only a few months later his department (BEIS) published one of the longest and most ambitious government White Papers in recent years.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/beis-white-paper-on-audit-reform-will-kwartengs-reforms-really-unchain-entrepreneursNick Ralphhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/is-a-personality-clash-in-the-boardroom-a-fair-reason-for-dismissalFri, 24 Sep 2021 00:00:00 +0100A recent case has highlighted a trend that that we have seen over recent years, with Employment Tribunals finding that the dismissal of a senior executive can be fair where there has been a breakdown in relations amongst a management team and one director / executive is considered to be more at fault (Moore v Phoenix Product Development Ltd EAT/0070/20).  Also, the procedural requirements for such dismissals may be more limited, in this case, the fact that no right of appeal was offered did not render the dismissal unfair.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/is-a-personality-clash-in-the-boardroom-a-fair-reason-for-dismissalKatie Allardhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/ignorance-is-bliss-not-for-directorsFri, 14 May 2021 00:00:00 +0100In the recent case of TMG Brokers Ltd (In Liquidation) (also known as: Baker v Staines) the High Court held a director of a company to be jointly and severally liable for payments made by his co-director out of the company’s bank account which were made without proper authority and amounted to  disguised distributions of capital. The fact that he had placed trust in the other director for the company's financial affairs did not excuse him from performing his duties.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/ignorance-is-bliss-not-for-directorsJohn Younghttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/fca-moves-to-deregulate-spacsThu, 01 Apr 2021 00:00:00 +0100Following the release of the Hill Report at the start of last month, the FCA has announced that it is going to open a consultation into changing the Listing Rules and connected guidance with a view to encouraging the listing of Special Purpose Acquisition Vehicles (SPACs).https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/fca-moves-to-deregulate-spacsJohn Younghttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/icsas-report-on-board-evaluations-a-brief-summaryTue, 23 Feb 2021 00:00:00 +0000Following a request by the Department of Business, Energy and Industrial Strategy (“BEIS”) ICSA has prepared a report assessing the effectiveness of the independent board evaluation process introduced in the 2018 update of the UK Corporate Governance Code (the “UK Code”).  https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/icsas-report-on-board-evaluations-a-brief-summaryLuke Gregoryhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/one-hand-in-the-cookie-jar-fraud-and-directors-duties-in-insolvencyWed, 17 Feb 2021 00:00:00 +0000What happens when a director commits fraud by misappropriating company assets?  Or what of the director who continues trading knowing that the company has no realistic prospect of paying its debts as and when they fall due? To whom does a director owe duties at that point and what recourse is there against that director? This article explores these questions.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/one-hand-in-the-cookie-jar-fraud-and-directors-duties-in-insolvencyDispute Resolution Law Teamhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/money-money-money-what-are-directors-duties-in-respect-of-the-companys-bank-accountMon, 14 Dec 2020 00:00:00 +0000Disputes between directors often arise because of, and/or result in, disputes about company money. Directors need to be alert to how they are required to act, particularly in times of conflict.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/money-money-money-what-are-directors-duties-in-respect-of-the-companys-bank-accountFiona Simpson and Sophie Masshttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/can-a-de-facto-director-be-disqualified-as-a-directorFri, 04 Dec 2020 00:00:00 +0000It is well known that directors owe duties to the company of which they are a director and, in certain circumstances, its shareholders, creditors and employees. Many people believe that if you have not been formally appointed as a director, i.e. you do not appear on Companies House records as a director, you will not owe the usual directors’ duties and, therefore, cannot be in breach of such duties or subject to sanctions for breach.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/can-a-de-facto-director-be-disqualified-as-a-directorShannett Thompsonhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/fit-and-proper-person-requirements-for-directors-in-the-health-and-care-sector-what-does-this-mean-and-what-are-service-providers-required-to-doTue, 24 Nov 2020 00:00:00 +0000All providers registered with the Care Quality Commission (“CQC) must assure themselves that all directors who are responsible for delivering care to service users are fit and proper – in other words, they must be able to diligently carry out their responsibility to ensure the quality and safety of care. This forms part of the providers’ duty to ensure the service is well-led, which is one of the focus points during an inspection. Not only does the CQC monitor compliance at the point of registration, but it is an on-going duty and can lead to enforcement action where it is not met.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/fit-and-proper-person-requirements-for-directors-in-the-health-and-care-sector-what-does-this-mean-and-what-are-service-providers-required-to-doLucy Bluckhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/directors-communications-with-their-solicitors-perhaps-not-as-privileged-as-you-think-part-2Wed, 18 Nov 2020 00:00:00 +0000In the recent case of Barrowfen Properties Ltd v (1) Girish Dahyabhai Patel (2) Stevens & Bolton LLP (3) Barrowfen Properties II [2020] EWHC 2536 (Ch), the High Court extended the iniquity exception to breaches of a director’s statutory duties.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/directors-communications-with-their-solicitors-perhaps-not-as-privileged-as-you-think-part-2Julie Mathesonhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/insolvency-practitioners-the-regulators-reach-is-wide-when-it-comes-to-integrityThu, 12 Nov 2020 00:00:00 +0000It goes without saying that Insolvency Practitioners must behave honestly and with integrity in all their professional dealings.  IPs must handle money and assets in a way which justifies the trust placed in them, but some professionals don’t realise that the way they behave on a Saturday night may be just as relevant to their ability to continue in their chosen profession as the way they behave on a Monday morning.   https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/insolvency-practitioners-the-regulators-reach-is-wide-when-it-comes-to-integrityCriminal Law Teamhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/coronavirus-business-loan-scheme-fraudFri, 23 Oct 2020 00:00:00 +0100In response to the coronavirus (“COVID-19”) pandemic, the government introduced a number of loan schemes in order to assist businesses struggling financially.  Recent reports suggest that these schemes, as outlined below, have become a target for fraudulent loan applications, by both genuine businesses and also organised criminal enterprises.  This blog briefly examines the various loan schemes in place and the criminal offences which are likely to be the focus of investigating authorities in the coming months.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/coronavirus-business-loan-scheme-fraudRichard Claymanhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/the-driving-force-fallacyFri, 23 Oct 2020 00:00:00 +0100Court of Appeal overturns injunction in favour of son who sought to restrain his family from participating in the management of their caravan park business - Loveridge –v- Loveridge [2020] EWCA Civ 1104.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/the-driving-force-fallacySophie Woodhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/directors-disqualified-following-history-of-health-and-safety-and-waste-law-breachesFri, 09 Oct 2020 00:00:00 +0100Brother and sister Mark and Rachel Penfold were directors of a waste management company. In February 2016 an employee of the business suffered a serious injury when his arm was caught in a conveyer he was operating whilst at work. The Health and Safety Executive prosecuted the company and both individuals under the Provision and Use of Work Equipment Regulations 1998 (PUWER). https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/directors-disqualified-following-history-of-health-and-safety-and-waste-law-breachesCorinne Aldridge and Richard Claymanhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/director-of-an-insolvent-company-know-your-exposureMon, 10 Aug 2020 00:00:00 +0100We live in uncertain and financially very troubling times.  The coronavirus pandemic and the unprecedented measures put in place to tackle it have caused severe disruption to businesses.  Big names such as Harveys, TM Lewin, Intu and the owners of Café Rouge and Bella Italia all went into administration at the beginning of the month.  They will not be the last.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/director-of-an-insolvent-company-know-your-exposureNick Ralph and Fiona Simpsonhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/stretching-the-limits-of-directors-personal-liability-for-tortsFri, 24 Jul 2020 00:00:00 +0100It is a sad reality that the Covid-19 Pandemic is likely to lead to a spike in the number of companies being put into insolvency.  This has the potential to leave parties with claims against those companies with a reduced prospect of full recovery, even if their claims are strong.  As a result, claimants may look for alternative targets, including ways in which they could sue directors personally. https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/stretching-the-limits-of-directors-personal-liability-for-tortsDiva Shah and Luke Gregoryhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/company-succession-planning-death-of-a-sole-director-now-whatTue, 16 Jun 2020 00:00:00 +0100Company succession planning is critical to ensure that a company can continue to run in the unfortunate event that a director (or shareholder) dies. If there are other surviving directors, they are able to step in and run the company, but what happens when a sole company director dies?https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/company-succession-planning-death-of-a-sole-director-now-whatConnie Atkinsonhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/the-impact-of-the-coronavirus-crisis-on-business-valuations-in-divorce-settlementsTue, 12 May 2020 00:00:00 +0100The impact of COVID-19 is being felt in many different ways.  For those going through a separation or divorce, the pandemic has added a layer of uncertainty and stress to an already difficult process. This is particularly so for those who own a business (or whose spouse does), where the value of their business may have been affected and they are concerned with the impact on a financial settlement. In this blog, we look at the complexities of valuing businesses in divorce proceedings at this unprecedented time and provide some practical considerations.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/the-impact-of-the-coronavirus-crisis-on-business-valuations-in-divorce-settlementsRichard Claymanhttps://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/liquidation-and-fiduciary-duties-no-rest-for-the-wicked-directorsWed, 15 Apr 2020 00:00:00 +0100In Hunt (as Liquidator of System Building Services Group Ltd) v Michie & Ors [2020] EWHC 54 (Ch), ICC Judge Barber has confirmed that directors of insolvent companies remain subject to fiduciary duties, even after those companies enter into an insolvency procedure.https://www.kingsleynapley.co.uk/insights/blogs/directors-and-officers/liquidation-and-fiduciary-duties-no-rest-for-the-wicked-directors