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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3655
Experience:  Solicitors 2 years plus PQE
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I am currently being personally sued. I have a small company

Resolved Question:

I am currently being personally sued. I have a small company of which I am the sole owner/director. The company has no assets other than what is in the bank. I am an employee of the company for tax purposes and receive a small income. If I were to lose at court and the claimant sought damages from me, would they take the company into account. When stating my income, do I have to declare what my company earns or only what I earn (I have not taken dividends and accrued profits are in the company bank account). Thanks
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

They can take into account all your assets, however if you are self employed then they may not be able to seek enforcement over assets like the tools of your trade or seek an attachment of earnings order on your salary.

For what reason are you being sued?

Kind regards

AJ
Customer: replied 3 years ago.

I am bring sued for breach of fiduciary duty. I used to be a director of a food manufacturer. They are blaming me for a couple of commercial decisions I made (with their say-so) that went bad.

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

That is a very difficult claim to succeed.

Surely you have board minutes etc ratifying or approving your actions?

Is the claim under S.172 of the Companies Act 2006?

Kind regards

AJ
Customer: replied 3 years ago.

I am not sure if they are suing in S.172. I have a cmc meeting tomorrow where I am seeking for them to disclose corporate emails between the shareholders and the MD. They were well aware of what was happening, however, as yet I have not been able to get hold of the documents.


 


I have requested a number of email chains between members of the company and suppliers as well as shareholders. Can they resist my request and can I insist that I get the evidence in electronic form.


 


Thanks

Expert:  Alex J. replied 3 years ago.
Hi,

Thank you.

They will have to disclose everything that is relevant to the claim at hand. Clearly if these emails gave you authority to act or ratified your actions then they are relevant to your claim. They do not however have to give you electronic copies, they can give you hard copies. See Part 31 of the Civil Procedure Rules.

I am not quite sure what the basis of this claim is, it is very difficult to sue a director for breach of fiduciary duty unless they have either not acted in the best interest of the company, acted expressly against the company wishes or acted outside their scope of power in the articles.

I look forward to hearing from you.

Kind regards

AJ
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