Thursday, 10 October 2013

Common Mistakes in Director Disqualification Claims - Feeling pressured to giving a quick response

Directors can often feel pressured to meet deadlines set out in correspondence from the Insolvency Service.  They should not. The Insolvency Service is quick to “impose” deadlines in the hope of obtaining a “hurried” response which can make their task easier, is administratively more convenient and assists with their annual targets. Do not fall in to this trap. There is no legal requirement to respond by the deadlines set out in their correspondence.

Remember that any responses given by a person can (and often is) exhibited to the formal affidavit of the Secretary of State if proceedings are issued. It is vital that any response is carefully considered and well thought out, even if a person decides not to take legal advice.

An individual is entitled to ask for sufficient time to respond. They should not feel pressured in to responding in a hurry.  Hastily put together responses can (and often are) used against directors and damage the prospects of defeating a claim.