Understanding Your Rights: How to File a Claim Against the Director of a Dissolved Company

Filing a  claim against the director of a dissolved company can be a complex and daunting process. However, understanding your rights and the appropriate steps surrounding it can help you navigate this challenging situation more effectively.

In this blog post, we will explore the crucial aspects you need to consider and guide you through the process of filing a claim against a director of a dissolved company. From why you might want to do this, to how you might even begin the process, read on…

Filing claim against director
photo credit: Sora Shimazaki / Pexels

Why File a Claim Against a Company Director?

There are several reasons why you might need to file a claim against the director of a dissolved company. These could include:

  • Unpaid debts or financial obligations
  • Breaches of fiduciary duties
  • Fraudulent activities or misrepresentation

Understanding the grounds for your claim is essential in ensuring that your case is robust and valid.

Understanding the Legal Framework of Filing a Claim

Before proceeding with a claim, it’s important to understand the legal framework governing such actions. The Companies Act 2006 and the Insolvency Act 1986 are the primary pieces of legislation that outline the duties and responsibilities of company directors in the UK.

The Companies Act 2006

The Companies Act 2006 sets out the general duties of directors, including the duty to act within their powers, promote the success of the company, and exercise independent judgment. If a director has breached any of these duties, you may have a valid claim against them.

The Insolvency Act 1986

The Insolvency Act 1986 provides additional guidelines on what actions can be taken against directors, particularly in cases of insolvency. This act outlines the circumstances under which directors can be held personally liable for the company’s debts.

Steps to File a Claim Against a Director

Taking the right steps is crucial to ensuring the success of your claim. Here are the general steps you should follow:

  1. Gather Evidence: Collect all relevant documents, emails, and records that support your claim. This could include financial statements, contracts, and correspondence with the director.
  2. Seek Legal Advice: Consulting a legal expert can provide you with a clearer understanding of your rights and the strength of your case. They can also help you navigate the complexities of the legal process.
  3. File the Claim: Your legal advisor will guide you in preparing and submitting the necessary documents to the court. Ensure that all forms and evidence are accurately completed and submitted within the required time frame.

Filing a claim can be a resource-intensive process, but thorough preparation and professional advice can significantly increase your chances of success.

Possible Outcomes

When filing a claim against a director, be prepared for various possible outcomes. The court may:

  • Order the director to pay compensation
  • Disqualify the director from holding future directorships
  • Order other forms of restitution or corrective action

Understanding these potential outcomes can help you manage your expectations and prepare accordingly.

Working with a lawyer

Key Considerations when Filing a Claim Against a Director

Before proceeding with your claim, there are several key considerations to keep in mind. These include the time limits for filing a claim, the jurisdiction of the court, and the financial implications of pursuing legal action.

Time Limits

Time is of the essence when it comes to filing a claim. Generally, the statute of limitations for bringing a claim against a director is six years from the date of the alleged misconduct. However, this can vary depending on the specifics of your case and the type of claim you are making. It is advisable to seek legal advice to ensure you file within the appropriate time frame.


Understanding which court has jurisdiction over your claim is crucial. Generally, claims against directors are heard in the High Court or the County Court, depending on the complexity and value of the claim. Your legal advisor can help you determine the appropriate venue for your case.

Financial Implications

Filing a claim can be expensive, involving court fees, legal fees, and other associated costs. It’s important to weigh the potential financial benefits of your claim against these costs. In some cases, the court may order the losing party to pay the winning party’s legal costs, but this is not guaranteed.

Alternatives to Filing a Claim Against a Director

While filing a claim might seem like the only option, there are alternative avenues you can explore. Mediation and arbitration are less adversarial methods of resolving disputes and can be more cost-effective and quicker than going to court.


Mediation involves a neutral third party who helps both parties reach a mutually acceptable resolution. This method is often less formal and more flexible than court proceedings. It can also help preserve professional relationships, which may be beneficial if future interactions are anticipated.


Arbitration is another alternative, where an arbitrator makes a binding decision on the dispute. This process is generally faster than court proceedings and can provide a more private resolution to the conflict.

Wanting to File a Claim Against a Director of a Dissolved Company?

Filing a claim against the director of a dissolved company is a serious and often complicated undertaking. By understanding your rights and the legal framework, gathering strong evidence, and seeking professional legal advice, you can increase your chances of a successful outcome.

Whether you choose to file a claim or explore alternative dispute resolution methods like mediation or arbitration, knowing your options is key. By carefully considering each step and seeking the right advice, you can effectively navigate the complexities of filing a claim, ensuring that your rights are protected and your grievances addressed.