Testimonial for Suky Mann of NDP Solicitors – Successfully Acting for a Client in an Overdrawn Director’s Loan Account Case
In this testimonial, a client describes how one of our solicitors, Suky Mann, helped him find a solution to a case that had been brought against him by the liquidator for an overdrawn director’s loan account in the sum of £80,000. Such cases can often end up in an investigation by the Insolvency Service that can lead to director disqualification.
The Client was Delighted with the Clear, Honest Professional Advice He Received
“In response for your request for feedback, following on from last years’ proceedings and legal defence mounted on my behalf, I would like to thank Suky Mann of ND and P for the sterling defence of my case.
Her no-nonsense, straight talking approach allowed us to clear up confusion and find a clear path through the process, which allowed expectations on both sides to be set.
With the groundwork prepared, my defence was mounted, and an amicable settlement reached. I am glad to say that a line has now been drawn with the case, with everything completed to my satisfaction.
At each step of the process, Suky kept me informed and at times acted as a fulcrum point to tie things together, whilst bring clarity and calm to a maddening situation.
I would not hesitate to recommend Suky to any prospective client, who like me, just needed some clear honest professional help, which I am glad to say was provided so well by Suky Mann.”
Regards (KS, Managing Director)
What do Liquidators Look for in a Liquidated Company?
When Liquidators are appointed, they will always investigate several key areas in a liquidated company. One of these is whether the Directors, at the point of liquidation, had overdrawn Directors’ Loan Accounts (‘DLA’). In other words, that situation where the Director has taken money out of the Company that is not classed as a Dividend or salary and where the figure exceeds any money that the Director has put into the company.
Statistics show that when businesses face insolvency due to financial problems, around 75% of those cases will have a Director with an overdrawn DLA. It is not unusual for Directors to ‘help themselves’ to company funds, intending to pay it back at some future time, only for the company to see profits and cash nose-dive.
If a director cannot repay the money he or she has withdrawn from the company, then personal bankruptcy could be the outcome. A liquidator’s duty is to work in the best interests of creditors, and they will pursue directors through the courts to recoup the company’s funds.
If the Insolvency Service then undertakes an investigation into the actions of the directors in cases where a company has been liquidated, then the director may face director disqualification for up to 15 years.
Contact us if you are Being Pursued by a Liquidator for Repayment of an Overdrawn Director’s Loan Account
Our Insolvency and director disqualification Solicitors are experienced in advising and defending directors who are facing claims from Liquidators. We have a strong track record in advising and helping directors in these areas – click here to see some more testimonials.
Our mantra is that is that ‘no hole is too deep for us to be able to help to make a difference’. If your company is insolvent and is facing liquidation, and you are facing a financial or regulatory claim, or are facing director disqualification, contact us or call us on 0121 200 7040 for a FREE initial discussion of your case.