Directors & Officers Insolvency Solicitors

Restructuring & Insolvency

Legal Advice for Directors, Officers and Executives Facing Insolvency

When a company faces financial distress, the legal position of its directors and officers changes significantly. If you are a director, non-executive director, or senior officer of a business in London dealing with insolvency risk, the decisions you make now can determine whether you face personal liability. Gurve Legal provides clear, practical advice to help you protect your position and act within the law.

Directors and officers insolvency solicitors need to understand not just the law, but the commercial pressures you are under. We advise business owners, managing directors, company officers, and executives at all stages: from early signs of financial difficulty through to formal insolvency proceedings, liquidation, and beyond.

The earlier you take legal advice, the more options you have. Acting promptly can reduce your exposure to claims for wrongful trading, misfeasance, and breach of duty, and can protect your ability to continue as a director in the future.

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Our Insolvency Services for Directors and Officers

Directors’ Duties During Financial Distress

Under the Companies Act 2006, your duties as a director shift when a company becomes insolvent or insolvency is foreseeable. The primary obligation moves from promoting the success of the business to protecting the interests of creditors. Failing to understand and act on this shift is one of the most common sources of personal liability for directors.

Advice on when and how your duties change during financial distress
Guidance on decisions that carry heightened personal risk
Support with documenting decisions to reduce future liability
Advice for non-executive directors and shadow directors on their obligations

Wrongful Trading Defence

Wrongful trading occurs when a director continues to allow a company to trade when they knew or ought to have known that there was no reasonable prospect of avoiding insolvent liquidation. Liquidators can bring claims against directors personally, and the financial consequences can be severe. Our solicitors advise and defend directors facing wrongful trading allegations, as well as advising businesses on how to avoid liability in the first instance.

Early risk assessments to identify wrongful trading exposure
Defence of claims brought by liquidators or administrators
Advice on the timing and process for ceasing to trade
Support in building a contemporaneous record to defend future claims

Misfeasance and Breach of Duty Claims

Misfeasance claims arise where a director has misapplied, retained, or become accountable for company property, or has breached their fiduciary duties. These claims can be pursued in insolvency proceedings and can result in directors being ordered to contribute to the company’s assets. Gurve Legal’s dispute resolution team works alongside our insolvency advisers to defend these claims robustly.

Defence of misfeasance proceedings issued by liquidators or administrators
Advice on breach of fiduciary duty allegations
Representation in the Insolvency and Companies Court
Strategic advice on settlement versus litigation

Director Disqualification Advice

Insolvency practitioners are required to report on the conduct of directors when a company enters a formal insolvency process. Where conduct is found unfit, the Insolvency Service may apply to disqualify a director for between two and fifteen years. A disqualification prevents you from acting as a director or being involved in the management of a company without court permission.

Advice from the investigation stage through to disqualification proceedings
Negotiation of disqualification undertakings where appropriate
Defence of full disqualification applications
Advice on compensation orders following disqualification

Personal Guarantee and Liability Advice

Directors of SMEs frequently provide personal guarantees to lenders, landlords, and suppliers. When a company fails, these guarantees become enforceable against you personally. Our team advises directors and business owners on their exposure under personal guarantees, negotiation strategies, and available defences. For advice on your overall financial restructuring options, see our business restructuring service.

Review and advice on the scope of personal guarantee obligations
Negotiation with creditors to reduce or settle guarantee claims
Defence of enforcement proceedings
Advice for spouses and co-guarantors on their position

HMRC Enforcement and Winding-Up Petition Advice

HMRC is one of the most active creditors in corporate insolvency and can petition to wind up a company for unpaid tax liabilities. Receiving a winding-up petition is a critical moment: once advertised, a company’s bank account may be frozen and payments restricted. Gurve Legal provides urgent advice to directors facing HMRC action and represents companies opposing winding-up petitions.

Urgent advice on responding to winding-up petitions
Applications for validation orders to allow payments to continue
Negotiation with HMRC on time-to-pay arrangements
Advice on CVA and other alternatives to liquidation

Antecedent Transaction Advice

Transactions carried out before insolvency, including payments to connected parties, asset sales at undervalue, and preferential payments to certain creditors, can be challenged by liquidators and reversed. Directors can face personal claims where such transactions are found to have disadvantaged the general body of creditors. Our team advises on insolvency advisory matters including the risk profile of transactions made in the period before insolvency.

Advice on transactions at undervalue and preferences
Defence of claims under sections 238, 239, and 423 of the Insolvency Act 1986
Strategic advice for directors and officers ahead of formal proceedings
Advice on asset recovery and antecedent transaction claims for creditors

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Why Choose Gurve Legal

Director-Focused Advice, Not a Generic Insolvency Service

Many insolvency law firms focus primarily on insolvency practitioners, creditors, or companies. Gurve Legal focuses on the individuals who run those companies: directors, officers, and executives who need to understand their personal position and protect their own interests. Our advice is always specific to your role, your decisions, and your exposure.

Commercial Advice for Business Owners and SME Directors

Most of our clients are directors of SMEs and growing businesses, not large corporates with in-house legal teams. We understand the practical pressures you face: managing cash flow, creditor relationships, and staff while also trying to meet your legal obligations. Our advice is commercial and plain-spoken, with a clear focus on what you can do and what you should avoid.

Integrated Legal Support Across Restructuring and Disputes

Insolvency situations rarely sit in one area of law. A director may face a misfeasance claim, a personal guarantee enforcement, and a wrongful trading allegation simultaneously. Gurve Legal’s restructuring and insolvency team works alongside our commercial dispute resolution and business restructuring teams to provide joined-up advice across all of these issues without the need for multiple firms.

Acting for Both Sides Means Sharper Advice

Gurve Legal acts for both directors defending insolvency claims and for companies and creditors pursuing them. That means we understand the strategies used on both sides. Whether you are defending allegations of wrongful trading or advising your business on how to manage a distressed position, our insight into how claims are built and challenged gives you a genuine advantage.

Speak to Our Directors and Officers Insolvency Solicitors Today

If your company is in financial distress or you are facing claims as a director or officer, the time to act is now. Gurve Legal provides practical, commercially focused insolvency advice to directors and business owners across London and beyond. We will help you understand your position, your options, and the steps you need to take to protect yourself.