Compensation Orders against Disqualified Directors

Overview

As from 1st October 2016 it will be possible for the Secretary of State, in addition to seeking a disqualification order, to apply to the court for an order that the director should pay compensation for the losses which he has caused to the creditors of the insolvent company or in the alternative seek an undertaking to pay a corresponding amount to the Secretary of State.


Nick has become particularly known for dealing with insolvency disputes, insolvency investigations (particularly in a fraud context) and technical insolvency advice. 

In addition to acting for individuals and company directors (including defending insolvency related claims and disqualification proceedings), he has provided technical advice on insolvency-related matters to clients including insolvency practitioners, banks, local authorities, HM Revenue & Customs, landlords and trade creditors. Nick also has considerable experience in advising businesses in relation to complex asset and debt recovery issues.

Nick has dealt with a number of high profile bankruptcy and insolvency cases including acting for Michael Barrymore in relation to his bankruptcy, and advising the trustee in bankruptcy of Asil Nadir.

Originally from Portsmouth, he is a lifelong supporter of Portsmouth City FC and returned to the city in 2013 to join Verisona Law after 20 years of working in London. He is married and has two young sons. When not indulging their interests in cars and football, Nick likes to get out on boats in the Solent.


He has been ranked by Chambers and Partners ‘Client’s guide to the UK legal profession’ as a specialist in his field for a number of years. Chambers guide for 2015 referred to him as a practitioner with "a well-deserved reputation for contentious insolvency work."


Nick is a fellow of the Association of Business Recovery Professionals (R3), to whom he has also lectured, and was elected to R3’s Southern Region Committee in December 2013. He is also a member of the Insolvency Lawyers Association.

  • Trained at a boutique insolvency and litigation firm, Moon Beever, in central London.
  • Qualified with Moon Beever in 1996 and made up to partner there in 2000.
  • Moved to Blake Lapthorn in London where he was made up to partner and latterly headed up the Insolvency and Corporate Recovery department. 
  • Headed up the Insolvency and Corporate Recovery department at Howes Percival from 2010 to 2013.
  • Joined Verisona in Portsmouth in 2013.

Individuals:

  • Financial and money advice
  • Enquiries and claims by trustees in bankruptcy, the Official Receiver, the Insolvency Service and liquidators (including possession action in relation to residential properties)
  • Personal guarantees, statutory demands, bankruptcy petitions and individual voluntary agreements (IVAs)

 Company directors:

  • Enquiries and claims by the Insolvency Service Official Receiver and liquidators
  • Directors duties
  • Actions under the Directors Disqualification Act

 Businesses:

  • Advice regarding rescue and refinancing options (including administration and CVAs)
  • Statutory demands and winding-up petitions
  • Insolvency related disputes and technical issues

 Insolvency Practitioners:

  • Technical insolvency advice
  • Insolvency related litigation and disputes
  • Applications to court under the provisions of the Insolvency Act 1986 and Insolvency Rules 1986

“Many thanks for your valuable advice and expertise in this matter, I will certainly recommend your services to contacts of mine that might need legal advice”.

Independent bank customers

Making a claim for negligent advice

The client asked us to consider and advise on the conduct of their former solicitors during both of the cases.  We careful analysed many files and documents, including the former solicitors’ files, and concluded that the client had a claim.

We pursued the solicitors for negligent advice and handling of the cases, with a view to recovering our client’s losses.  This involved extensive dealings with the firm, through their professional indemnity insurers and city lawyers. 

They refused to pay the claim, despite being provided with considerable supporting evidence and legal argument during various attempts to negotiate and settle the dispute.

Pursuing the professional negligence case in the High Court

We started High Court proceedings, which the former solicitors defended by denying the allegations and raising a number of technical legal points. 

Ultimately we exerted sufficient pressure in the litigation to force a settlement before the case reached trial, resulting in our client recovering a six-figure sum. This represented the vast majority of all legal costs they had paid, as well as Verisona Law’s legal fees.

Individual Property Owner

Defending against the receiver’s claim for payment

The receiver vigorously pursued our client for payment, denying that any assurances were made or that the goods were defective. 

Despite the threat of legal proceedings our client resisted the claim for payment and instructed us to counterclaim damages on the grounds of misrepresentation, breach of contract and implied terms under the Sale of Goods Act. 

We gathered detailed evidence and submitted our analysis to the receiver’s solicitors. This led to a fierce exchange of letters, involving complex argument as to the legal effect of the supplier’s receivership on the claim.

A positive commercial outcome

Ultimately we persuaded the liquidator to drop the claim.  Our client was allowed to retain the goods and sold them on as an end-of-line product at a small profit.  

Testimonial

“Verisona Law dealt with a complicated dispute with a former manufacturing supplier forced into administrative receivership. Their clear, calm advice never wavered: their tenacity and diligence provided our company with a successful result”.

Managing Director of Textile Wholesaler

Successful Wholesale Textile Company

"Over the years, I have developed a great trust in my working relationship with Mike Dyer, Head of Commercial Law at Verisona. One of the things I value most is that he is always at the end of a phone. On the rare occasions he is unavailable, his secretary is always well informed and very helpful. Through Mike, I have met many other members of Verisona and, just like in the recruitment industry, they understand the importance of being treated like an individual. They make me feel valued and important to both them and their business. At Verisona, you always deal with real people who you know and are in a position to help. Most importantly, Verisona delivers. We recently had an urgent situation regarding the restrictive covenants of new members of staff. Employment specialist Susan Ball came in on a day off to listen to us, dissect and analyse the situation, and translate what we wanted to achieve into the best possible legal language and solution. This is just one example of the calm, efficient professionalism I have come to value from Verisona over the years. Verisona has a refreshing approach to the law. They are there when we need them, always easy to talk to, go out of their way to make sure that we understand what they are doing for us and why, and always get the best results".

Stuart Cox

Testimonials

  • “Many thanks for your valuable advice and expertise in this matter, I will certainly recommend your services to contacts of mine that might need legal advice”.

    Independent bank customers

  • Making a claim for negligent advice

    Individual Property Owner

  • Defending against the receiver’s claim for payment

    Successful Wholesale Textile Company

  • "Over the years, I have developed a great trust in my working relationship with Mike Dyer, Head of Commercial Law at Verisona. One of the things I value most is that he is always at the end of a phone. On the rare occasions he is unavailable, his secretary is always well informed and very helpful. Through Mike, I have met many other members of Verisona and, just like in the recruitment industry, they understand the importance of being treated like an individual. They make me feel valued and important to both them and their business. At Verisona, you always deal with real people who you know and are in a position to help. Most importantly, Verisona delivers. We recently had an urgent situation regarding the restrictive covenants of new members of staff. Employment specialist Susan Ball came in on a day off to listen to us, dissect and analyse the situation, and translate what we wanted to achieve into the best possible legal language and solution. This is just one example of the calm, efficient professionalism I have come to value from Verisona over the years. Verisona has a refreshing approach to the law. They are there when we need them, always easy to talk to, go out of their way to make sure that we understand what they are doing for us and why, and always get the best results".

    Stuart Cox


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