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Ross Miller
Ross Miller,
Category: Law
Satisfied Customers: 2406
Experience:  Director (Litigation and Mediation) at Hilltop Solutions
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What happens if a director settle a number of debts owed by

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Hi, what happens if a director settle a number of debts owed by his limited company to another company owned by a friend of his, DURING the administration?
JA: Has he talked to a lawyer about this? What country does he live in? If different, what country does this legal question relate to?
Customer: no, uk
JA: What steps has he taken so far?
Customer: none
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Hello, thank you for choosing our service, I will be the expert assisting you with this matter today.

Please note there may be delays between messages as the experts on this website are all third party and are not on here full time however, I will respond to your question today. I look forward to assisting you.

Thank you

Thank you for the question. If the company was in administration then only the administrator should be making any determinations on how the company debt is settled. Therefore if he has done this without consent of the administrators then it could be that he has breached his fiduciary duty. If that is the case then any creditors who have missed out (or will potentially miss out) should raise this directly with the administration team dealing with the dissolution of the company. If this is you personally then you could also look at legal action.

I will provide you with a helpful link which will allow your to find a solicitor near you local area who will be able to assist you with this matter.

I hope this information has helped. You can find a local solicitor who deals with this on the law society webpage which is;

https://solicitors.lawsociety.org.uk/

https://www.lawscot.org.uk/find-a-solicitor/ (Scotland)

If you require any help moving forward on this matter in the future, please do feel free to come back to us and I would be more than happy to assist.

Kindest Regards.

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