Claims brought against directors with respect to their personal liability for using a prohibited name under section 217 of the Insolvency Act or for acting in the management of a company whilst disqualified under section 15 of the Company Directors Disqualification Act are not available to IP’s and must be brought directly by the creditors of the insolvent company. 

 

Problem: How to enable creditors to benefit from this cause of action whilst justifying the time and expense spent in assisting the creditors in pursuing these claims. 

 

Result: Such claims are not brought to the attention of creditors, leaving the directors to benefit from their misdeeds.

 

Solution: Cavendish IP Solutions will buy the creditors debts for a nominal sum and pursue the claims against the directors paying a percentage of the recovery to the creditors.  In doing this we will cover the IP’s costs in arranging the transaction and any time spent in assisting us with obtaining the evidence needed to obtain a recovery.