Home / Fraudulent trading, wrongful trading, now “misfeasance trading” – Lessons to be learned from the trial of the former BHS directors
19th June 2024
By Associate, Manisha Modasia
Last week, on 11 June 2024, the High Court handed down the judgment in the claim by joint liquidators against two of BHS’s former directors.
The Court held the directors liable for:
There are some important lessons to be learned by Directors and Insolvency Practitioners from the 533-page Judgment.
All eyes remain on the reserved judgement on the quantum of the “malfeasant trading”. Is the Court to hold the directors liable for the entire increase in deficit in the insolvency or more sensibly the discrete loss created by the individual transactions based on the directors’ breach of duty?
A burning question for me is – how much of the minimum £18 million will find its way back to the creditors of BHS?
At Kuits we represent both Insolvency Practitioners in charge of considering transactions by directors, seeking to challenge them and also directors faced with allegations such at wrongful trading and misfeasance. This allows us to provide rounded advice from all angles of the dispute.
Do not hesitate to contact our Dispute Resolution and Insolvency Litigation Team on 0161 838 3434 or via email info@kuits.com.