UK Corporate insolvency – liquidators claiming misfeasance and transactions at undervalue

Your situation is serious, and the emotional weight you're feeling is absolutely understandable – especially with a court date looming just after the holidays. Here's a methodical way forward that balances practical steps with a sense of calm strategy.

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Understanding What's Happening

You're facing two main allegations:

1. Misfeasance – a claim that, as a director, you breached your duties or acted improperly (e.g., reckless decisions, failing to act in the company's interest).
2. Transactions at an Undervalue (τ) – that you transferred company assets for less than their true value, potentially harming creditors.

These are both common tactics used by liquidators during corporate insolvency proceedings to recover money for creditors. But they must prove their case.

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What You Should Do Immediately

1. Seek Specialist Legal Help

Yes, it can feel like finding a needle in a haystack – but here are some trusted UK-based firms that specialise in corporate insolvency defence, and deal with director disqualification/misfeasance claims:

Firm	Location	Known For
Francis Wilks & Jones LLP	London (UK-wide service)	Highly specialised in defending directors against misfeasance & undervalue claims
Neil Davies & Partners (NDP)	Birmingham (UK-wide)	Respected insolvency defence specialists
Shoosmiths LLP	National	Corporate law with insolvency defence teams
Begbies Traynor (Legal Division)	Manchester	Deep insolvency knowledge from both sides
Irwin Mitchell	Manchester & UK-wide	Large firm, insolvency litigation team available

You should contact at least two today or tomorrow. Ask for an initial consultation – some may offer it for free or at reduced cost.

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What to Prepare Right Away

Even before you secure legal counsel:

• Chronology of events – Outline the key decisions made before the company went into liquidation. Be honest and precise.
• Asset transfer details – If accused of undervalue transactions, list all business asset transfers in the 2 years before insolvency. Gather sale documents, valuations, and any justification.
• Director's decisions – Explain in writing why decisions were taken (especially if done in good faith to keep the business afloat).
• Communications with the liquidator – Organise emails, letters, and anything you've submitted already.

This will save time and reduce legal costs once your solicitor is on board.

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Knowledge is Power: Understand the Claims

• τ (Transaction at an Undervalue): Liquidators often fish. If the transaction had fair commercial rationale, you may have strong defence. Timing (within 2 years pre-liquidation), value received, and insolvency status at time of transaction all matter.
• Misfeasance: This is not the same as fraud. Often directors are accused for ordinary mistakes or judgments in tough times. Legal advice will determine if this is a paper tiger or a real threat.

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The Christmas Crunch

The courts won't show much leniency for the holidays, but you can:

• Ask your solicitor to request an adjournment citing lack of preparation time.
• Use any delay in correspondence over the holidays to gather more evidence or clarify misunderstandings.

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If You Cannot Get a Solicitor in Time

• Show up at the High Court in January.
• Ask for a short adjournment to seek representation. Be respectful, but clear about needing more time.
• Bring your written chronology and documents and explain you've been cooperative and acted in good faith.

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Final Advice

Do not bury your head. The fact that you've cooperated is in your favour. Many misfeasance claims are dropped or settled once a proper defence is mounted. The worst thing is silence. The second worst is panic. Let's avoid both.

Would you like help writing a concise summary of your position to send to prospective solicitors or use in court if you must speak for yourself?