Company Directors Criminal Liability & Fraud Lawyers

The specialist business and financial crime solicitors at Flint Bishop are experts in criminal and regulatory defence for company directors and have the knowledge and experience to protect you and your business.

Our expertise spans regulatory and corporate defence, criminal law, and the full spectrum of financial crimes and corporate fraud.

In the same way as any other member of the public , a company director may face criminal investigation or prosecution for allegations entirely unrelated to their business activities.

If you or your company is under investigation and you are looking for legal representation from a lawyer with experience and expertise in defending company directors facing all types of criminal charges call Jeremy Scott on 07971 520407 or Meghan Waldron on 07469 859708 at Flint Bishop today.

Early, focussed expert advice will always ensure a better outcome.

The main piece of legislation governing company law in the UK is the Companies Act 2006. The scope of the Act is very broad, making it one of the longest pieces of legislation ever enacted.

Another piece of legislation which can impact Directors personally is the Insolvency Act 1986 which deals with issues that arise when a company enters insolvency and its affairs are investigated by a liquidator. The insolvency landscape has changed in recent years to enable insolvency practitioners to more effectively pursue rogue directors.

Director’s actions will be closely scrutinised when a company is at risk of insolvency or where authorities suspect that criminal activity has taken place in a business. Directors could face hefty fines, disqualification or imprisonment if they are found to have acted improperly or criminally. In such circumstances, having the right legal defence team in your corner is crucial.

If a company becomes insolvent, and in the preceding period when insolvency is a known possibility, a director must consider the interests of creditors and not take any action which puts the creditors at risk of not being paid. The interests of the creditors must be given priority above those of the shareholders.

Within these Acts there are numerous ways in which company directors can face sanctions, criminal liability or disqualification and the sanctions are severe.

To talk to a lawyer experienced in defending company directors against allegations of any type, contact Flint Bishop today on 07798 905273.

Common offences under the Companies Act and Insolvency Act include:

• Fraudulent trading
• Failing to keep proper accounting records
• Unlawfully acquiring own shares
• Reuse of a company name has gone into insolvent liquidation
• Omitting information from a statement relating to a company’s affairs
• Destroying, mutilating or falsifying company records
• Misconduct during the course of a company being wound up.

If a company or a director is suspected of serious corporate abuse it may be investigated by the Insolvency Service. Offences often come to light through third-party reporting, complaints, and when a company enters insolvency. This may reveal serious issues such as fraudulent trading as well as more ‘minor’ offences under the Companies Act 2006 and Insolvency Act 1986.

Under English law, a company is a legal person and as such is not treated differently from an actual person in terms of criminal liability.

However, a company will typically only be criminally liable where the offence can be attributed to someone who was at or close to board level at the time.

For personal criminal liability to be established against a director or other officer, this can arise where it can be proved that the director either agreed to, knew about it, or failed to take action to stop or prevent the criminal act.

Consent

Consent refers to having knowledge and agreement to the facts amounting to the offence. It is not necessary for the director to realise that the facts he or she was aware of and agreed to amount to a criminal offence.

Connivance

Connivance is when the director turns a blind eye to the activity in question. Although the director doesn’t actively encourage what happens, they allow it to continue, saying nothing about it.

Neglect

The third route of establishing personal criminal liability against a director is where the company has committed an offence and it can be shown that this was as a result of neglect on behalf of the director. For example if a company is prosecuted by HSE for failing to ensure, in so far as is reasonably practicable, the health and safety of an employee, and it can be shown that a director or directors breached their duty of care, then the director can be prosecuted and could face a fine, disqualification and/or imprisonment.

If you are a company director facing allegations of a business crime please call the expert lawyers at Flint Bishop today on 07798 905273 for confidential advice.