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Can a Company Director Be Personally Sued for a Business Contract?

Can a Company Director Be Personally Sued for a Business Contract?

Many business owners are unsure whether a company director can be personally liable for breaches of a business contract. A recent dispute handled by IMD Corporate shows how misunderstanding legal standing and the Civil Procedure Rules can lead to unnecessary litigation and avoidable legal costs. The case involved two private limited companies — a restaurant in the hospitality sector (Company A) and a construction firm (Company B) — and centred on one key issue: who was the correct party to issue court proceedings against. The absence of a written contract and confusion over corporate legal identity led to litigation that could have been avoided through correct procedural steps.

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You made an offer. Can this be terminated?

As the offeror, you have extended an offer to the offeree. Can this offer be terminated? Are you locked in, waiting for them to accept or decline? Is your offer on the table forever?  In fact, offers can be terminated before acceptance under specific circumstances. Understanding how and when an offer can be terminated is key to maintain clarity, ensure legal compliance in contractual dealings, and encourage parties to cooperate.

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Why Russian Clients Remain Valuable to Western Industries Despite Sanctions: The Overlooked Risks of the Information Secrecy and Anti-Sanctions Regimes

Despite the ongoing geopolitical tensions and the sanctions imposed on Russia, many Russian clients continue to be valuable for Western industries such as the financial sector, legal services, and wealth management. These sectors have traditionally maintained strong relationships with high-net-worth individuals and corporations in Russia. However, Russia’s Information Secrecy Regime (ISR) and Counter-Sanctions Information Regime (CSIR) pose new challenges that many compliance specialists may overlook.

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construction contract negotiation

Comprehensive analysis of a high-value construction contract negotiation

Introduction to the Case The construction sector frequently encounters legal complexities, particularly when substantial projects are at stake. A compelling instance of such complexity is observed in a contract negotiation between a European company and a UK local authority. The project, with a valuation of approximately £25 million, aimed at developing housing under a design […]

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Do I need a shareholders’ agreement?

A shareholder agreement is a private arrangement between shareholders of a company. Although you may never need to rely upon its terms, it is useful for those entering into business with others. Not only does an agreement give all signatories to it confidence that their investment and the wider business will be protected, it is […]

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Letting Your Employees Work From Abroad, Should You Do It?

Concerns about the UK workforce and its rapidly depleting talent pool have been widely reported in the media. Figures from Totaljobs Hiring Trends highlight that over 4.5 million workers in the UK are considering moving abroad, citing factors such as the increasing cost of living and the COVID-19 pandemic as reasons for leaving the UK […]

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What Is a Data Protection Audit and Do You Need One?

Data protection can be complicated, but getting it wrong can have serious consequences for your business. The additional complications and sanctions as a result of GDPR, means that many businesses worry about their data protection procedures and processes, but a data protection audit can help. Typically, our team helps small to medium sized businesses to […]

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Shareholder Decision Making

Shareholder Decision Making: Your Questions Answered

If you are a shareholder in a private company, we understand that navigating decision making and disputes can be challenging. It may be unclear as to who is responsible for making such a decision or whether the board or the shareholders have the final say. In this article, we answer some of the most common […]

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Quick Guide to Agency and Distribution Agreements

If you are in the business of supplying or producing goods or services, you may have considered growing your sales network. It can be challenging to market in all areas and sectors at once, particularly without the assistance of a sales team. However, an agent or a distributor can help you to sell and market […]

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