We advised a director/shareholder on her exit from a company. The client was referred to us by a firm of insolvency practitioners at a time when our client’s co-investor had withdrawn funding from the company, as a result of which it was trading insolvent. Consequently, under the wrongful trading provisions set out in the insolvency legislation, our client was exposed to potential personal liability for the company’s debts.
We provided her with the necessary advice concerning her obligations whilst the company was trading insolvent, as result of which our client had the confidence to stand her ground on a deal breaker aspect of her exit negotiations with the co-investor and the company.
