Parliament has decided that Carillion’s board of directors were culpable for its failure. MP’s are calling for the disqualification of the board from acting as directors in the future – Judge, Jury and Executioner.
The directors of Carillion are accused of driving the company off a cliff in a dash for cash and of acting with greed and hubris. They have, of course, been paid extremely well to oversee the demise of this construction giant and will have questions to answer regarding its failure.
There are, of course, two sides to every story and whilst we don’t jump to the defence of the board in this article, if we were instructed by them we would rigorously test the allegations that were being made against them and expertly guide them through the process of explaining and defending their actions. We would note with interest that advisors and auditors from the big four accountancy firms had been consulted and that Parliament criticised those advisors for their failure to adequately advise – if the directors took advice and were guided down the wrong path, why should they be disqualified?
The directors of Carillion may live to regret their actions and may be disqualified and made to pay money to the liquidator of the company in due course but they have a right to defend themselves and will no doubt look to put their best case forward as and when they are called to do so.
Disqualification is not reserved for directors of companies that suffer high profile failures. There are usually around 1,000 or more directors disqualified from acting each year. Disqualification periods can range from 2 – 15 years. Will all of those who have been disqualified have deserved it? We doubt it. Will some who should have been disqualified got away with it? Definitely!
Isadore Goldman is a niche firm who are specialist in advising directors threatened with disqualification and misfeasance claims. We expertly guide our clients through the process of explaining and defending their actions. If we think you should defend, we will tell you. If we think you will be disqualified or ordered to pay money, we will tell you. In either case we will also help you put your best case forward with a view to achieving the best possible outcome.
If you have been threatened with disqualification or proceedings for misfeasance then get in touch with us on 0207 353 1000 and be put through to one of our expert solicitors. Alternatively email [email protected]with your contact details and we will arrange for you to be called back. There is no charge for this initial contact.
Disclaimer: this article is not to be relied upon as legal advice. The circumstances of each case differ and legal advice specific to the individual case should always be sought.