When a company becomes financially distressed or insolvent, the actions of its current and past directors typically come under intense scrutiny. An insolvency practitioner will assess whether any action should be brought against the directors or other third parties to recover value for the benefit of the company’s creditors and/or shareholders.

RS Forensic acts in insolvency related investigations and litigation advising on:

  • when a company became insolvent
  • director misfeasance claims
  • preferential treatment of creditors
  • transactions at an undervalue
  • wrongful trading

We act on behalf of insolvency practitioners bringing or director(s) defending a claim.

We draw on our extensive experience of fraud and accounting investigations, asset tracing exercises and expert witness work when appointed in connection with insolvency related matters.

Forensic accounting team

Typically instructed to provide independent and objective expert witness and advisory services in relation to matters involving owner-managed SME businesses.

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Forensic cases

Advising liquidator in a potential claim

Advising the liquidator acting for a group of language schools on the merits of 12 potential claims against the group's former director. The claims involved the sale of a subsidiary at undervalue, making poor and uncommercial investment decisions, acting with a clear conflict of interest with regard to sums paid to family members and acting in breach of the director's contract of employment.

Transactions with shareholders

Appointed to comment on the value of transactions between the company (which had gone into liquidation) and one of two shareholders. Drawing our conclusions was made more complex due to the quality of accounting records held by the company and numerous accounting inconsistencies found.

Single joint expert

Appointed as a single joint expert to conclude on the date upon which a company was insolvent, the extent to which the actions of the director may have contributed to the financial downturn of the company and the position of the director's loan account at the date of insolvency. We confirmed that, while the director had not misused company funds, he had prejudiced the creditors of the company by extracting funds to repay director’s loans after the point at which the company was insolvent. The case settled after our report was issued.

Forensic accounting testimonials

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