Corporate Investigation and Legal Services

How often has a company debt been ‘written off’ when a debtor company announces it is in the process of liquidation? CVL’s or Creditors Voluntary Liquidations are a common process often deployed by unscrupulous directors to avoid their creditors. In some cases parallel trading is happening, and as one company closes, another opens. Stock or plant is unaccounted for and transferred and the newly formed company is up and running on the back of the now liquidated company.

The process of liquidation is overseen and managed by ‘the chair’ of the creditors meeting, usually a Licenced Insolvency Practitioner appointed by directors calling the CVL. This whole area of activity is often co-ordinated, highly suspicious, and apparently unregulated. Often company director searches reveal that individuals have been directors of numerous companies, ALL of which have been placed into liquidation and been the subject of CVL’s.

One might ask the question “ How is it that an individual can be a Company Director of a succession of failed businesses, yet is shown to be living a lifestyle of comparative opulence and wealth,” as so often has been proved to be the case. Director Mis-feasance can simply be described as ‘breaches of fiduciary duty’ or offences committed by an individual in his position as a director of a UK registered company. The offences are numerous and can range from false accounting to theft of company assets, wrongful trading and fraudulent trading. UK Companies Act regulations apply.

In certain circumstances, "Limited Liability Protection" can be challenged and overturned, and the 'cloak of protection' rescinded, if proven acts of misfeasance and breaches of fiduciary duties as an officer of the company can be proved. This can pave the way for creditors to persue civil remedies for the recovery of otherwise ‘lost’ assets through their legal representatives. This can include the tracing and identity of personal assets held by the errant director and subsequent freezing orders imposed.

As former Economic Crime Company Fraud Department officers, in serious cases of corporate fraud, we have the experience, knowledge, and capability to support Solicitors acting on behalf of victim creditors in the execution of 'ANTON PILLER' civil search warrants, to identify and secure evidence of fraud and the existence and recovery of assets. In such instances we will co-ordinate and manage the recovery of evidence, and provide supporting witness affidavits.

From the investigation of Fraudulent trading, interviewing victim creditors, investigating claims of director mis-feasance, and tracing assets, we have experience in helping victim creditors to recover debts effectively ‘lost’ in suspicious Company CVL liquidations, where breaches of Companies Act Regulations have occurred or are suspected. Where necessary we have the facility to engage Forensic Accountants and specialist Solicitors engaged in Fraud and Asset Recovery to support the service.