Directors successfully resist claim to pay liquidators costs & expenses of failed wrongful trading claim

21st July 2016

In his second substantive judgment following the trial last summer of the liquidators’ wrongful trading claim against the three directors of Ralls Builders Ltd, Snowden J has dismissed the liquidators’ claim for a contribution to the Companies’ liquidation expenses (Grant v Ralls (No 2) [2016] EWHC 1812 (Ch)).  In so doing, the Judge has provided important clarification as to when a liquidator can recover his costs and expenses, as well as providing further guidance on what conduct will constitute ‘wrongful trading’ contrary section 214 of the Insolvency Act. Christopher Lloyd appeared for the defendant directors (with Christopher Boardman) instructed by Verisona Law. 

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